What are the benefits of the Atal Pension Yojana Scheme?

The Atal Pension Yojana, launched by the government in 2015-16, is a valuable social security scheme. Under this scheme, individuals can contribute to their Atal Pension Yojana account until they reach the age of 60 and then receive a monthly pension. This offers the advantage of providing a guaranteed minimum pension amount to help cover expenses after retirement.

The scheme's straightforward structure makes it easy for anyone interested to open an account. All major banks offer the Atal Pension Yojana to their customers. Contributions continue until age 60, and the scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Here are the different Atal Pension Yojana benefits to know about:

1. Death benefits

The Atal Pension Yojana provides death benefits to the contributor's spouse. If the contributor passes away, the spouse, who is the default nominee, will automatically receive the pension. If both the contributor and the spouse pass away, the nominee will receive the predetermined corpus amount based on the chosen pension slab.

Suppose the contributor dies before reaching 60 years of age. In that case, the spouse has two options: either continue the Atal Pension Yojana account and receive its benefits or close the account and withdraw the accumulated contributions along with the gains.

2. Retirement benefits

The Atal Pension Yojana's primary benefit is its retirement pension. Based on the contributions made, subscribers will receive a monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000. The contribution amount varies depending on the chosen pension amount. If the subscriber passes away, the pension is paid to the spouse.

3. Tax benefits

The government offers tax benefits on Atal Pension Yojana contributions to encourage participation. These tax benefits can be claimed under Section 80CCD (1B), allowing subscribers to avail of an additional deduction of up to ₹50,000 beyond the standard ₹1.5 lakh limit. This helps reduce the subscriber's taxable income, making the scheme even more attractive.

With these benefits, it is a good decision to contribute to ensure a pension is received. The Atal Pension Yojana has simple terms and conditions, which make it easy for the contributors to understand. Are you opening an account today?

Want to know more about opening an Atal Pension Yojana account scheme? Click here to read more!

You must visit your closest bank branch to get your Atal Pension Yojana Account in HDFC Bank. Click to get started!
 

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice ​