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Atal Pension Yojana: The Government of India operates the Atal Pension Yojana (APY) which helps citizens to reap tremendous benefits post retirement. For those who want to make sure that they are getting a fixed amount after they retire and do not want to be dependent on other people, the APY is a great scheme. By investing a small sum of money every month, one can unlock the potential of receiving a guaranteed pension of 1000 to 5000 rupees. If you would like to learn how to apply for the scheme and are interested in receiving 5000 rupees monthly in pension after retirement, continue reading.
What is Atal Pension Yojana?
Atal Pension Yojana (APY) is a government scheme of India especially designed for the people employed in the unorganized sector. Its primary goal is to help people achieve financial independence in their later years. Under the scheme, individuals can contribute between the ages of 18 and 40, and upon reaching 60, they will receive a monthly pension based on the plan they chose. The scheme is managed by PFRDA (Pension Fund Regulatory and Development Authority).
Great Benefits of Atal Pension Yojana (APY Scheme)
Guaranteed Pension: Since this is a Government pension scheme, the pension payable under this APY is fully guaranteed by Government of India. Your investments are also safeguarded.
Less investment, bigger benefit: The earlier you start, the lesser your monthly payment will be.
Flexibility in choosing pension amount: You can choose a monthly pension of ₹1000, ₹2000, ₹3000, ₹4000 or ₹5000 in accordance to your requirement.
Tax exemption: Contributions made to Atal Pension Yojana qualifies for additional tax benefit of upto ₹50,000 under 80CCD (1B) of Income Tax Act.
Benefit to nominee: If a pensioner passes away after the age of 60, their spouse will continue to receive the pension benefit. In case both perish, the entire corpus will be returned to the nominee.
What is the required investment to avail a pension of ₹5000? (APY Chart for ₹5000 Pension)
Age of Joining Monthly Contribution Total Investment Duration
18 years ₹210 42 years
20 years ₹248 40 years
25 years ₹376 35 years
30 years ₹577 30 years
35 years ₹902 25 years
40 years ₹1454 20 years
How to apply? (How to do APY Online and Offline)
It is quite simple to apply for Atal Pension Yojana as it can be done both online or in-person.
1. Offline method (through bank or post office):
Visit the bank or post office where you hold a savings account.
Request for the APY Registration Form.
In the provided form, fill in your name, address, adhaar number, mobile number, and nominee details as instructed.
Submit the filled form along with self attested Aadhaar card and other specified documents.
Your account will be created and the contribution will be deducted automatically every month from your linked bank account.
2. Digital Approach (via net banking):
APY applications can be made online. Log in to your bank’s net banking.
In the session, check for a ‘Social Security Schemes’ or ‘APY’ option.
Click on “Apply for APY”.
Complete the form by entering your name, pension option (₹5000), and nominee’s details.
Provide your form and consign auto-debit authorisation.
Completion of registration will be done and PRAN will be generated.
This is also the way to apply
Go to the page https://enps.nsdl.com/eNPS/NationalPensionSystem.html first.
Then go to the Atal Pension Yojana section and hit APY Registration.
Complete the New Registration Form and hit Continue.
Post submission of this form, enter Complete Pending Registration as mentioned and finish KYC.
Following this, Acknowledgement Number is produced.
Decide on the amount of pension you wish to receive upon turning sixty.
Also state the mode for deduction of payment: monthly, quarterly, bi-annual or annual.
Subsequently, provide details of the nominee form accurately.
Post completing all the steps, you will be directed to the eSign section of the site NSDL.
You will be linked to the scheme after Aadhaar OTP verification.
What documents would be necessary? (Required Documents)
Mobile Bank account number
Aadhaar card
Identificaiton card
Proof of age documents such as birth certificate or matriculation certificate.
Validation of current living address.
A cell phone that is in service.
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