Why was the scheme launched?
Prime Minister Shri Narendra Modi launched this GOI guaranteed scheme in May 2015 which is one of the three Jan Suraksha schemes. The Pension Fund Regulatory and Development Authority governs this policy. 88% of the Indian workers don’t have an old age income support. Hence, to help the workers hired in the unorganized division and develop a habit of saving for retirement, this social welfare scheme was launched. The Atal Pension scheme replaced the earlier Swavalambam Yojana that was not very well accepted by the people. It is essential to help these daily wage workers in financially securing their future.
How does this scheme work?
It is a pension policy that has been developed under the E-Governance services. It is based on a contribution made by the workers at periodic intervals that they get to select. It ensures a secured pension of Rs 1000 to Rs 5000 each month. The subscriber will get this amount at retirement, i.e. 60 years. The amount that you have contributed monthly determines the amount of pension that you receive at that age.
If the applicant to this scheme dies, then their spouse receives the amount. However, if both of them die, the amount accumulated through the years is then given to the nominee.
Eligibility criteria for the scheme:
The applicant must:
- Be between 18 to 40 years
- Have a mobile number and mention it while registering
- Have a valid savings account
- Be a citizen of India
- Not have an already existing APY account
How to apply for this scheme?
The procedure to apply for this scheme is straightforward so that ordinary workers do not face a problem.
- In case you do not have a savings account, you have to start with that first.
- The next step is to fill up the registration form for the Atal Pension scheme wherein you need to give your mobile number. This form is available in various languages. You then need to apply along with a photocopy of your Aadhar card. For people who are accustomed to using the internet, online banking can be used to get registered for the scheme quickly.
- You then have to select the further details regarding the scheme and payment options. The premium is debited from your enrolment age until 60 years.
- However, if you desire to withdraw from the scheme, it cannot be done online.
Benefits of the scheme:
This policy developed under e-governance services has the following merits.
- There are flexible payment options, i.e. monthly, quarterly or yearly.
- It teaches the habit of savings among the people who fall in the lower-income category and generally spend their entire wages.
- Applying for APY is very simple. There are only a few basic requirements that need to be satisfied.
- The existing Swalambamam subscribers can switch to this scheme.
- More than one family member can join this scheme, thereby increasing the pension privilege for the family.