Major proportion of the India’s population invest in real estate and gold. Pensions are virtually absent in the country. Indian’s are seen to borrow later in their life and find it difficult to repay their loans and manage their finances.
Therefore, people should plan their retirement finances in their early ages to avoid further problems. The government of India (GOI) has come up with Atal Pension Yojana (APJ) to encourage and enable them to save for the retirement.
Following are the important things to know about APJ:
- Under the APY, there is guaranteed minimum monthly pension for the subscribers ranging between Rs. 1000 and Rs. 5000 per month.
- The benefit of minimum pension would be guaranteed by the GoI.
- GoI will also co-contribute 50% of the subscriber’s contribution or Rs 1,000 per annum, whichever is lower. Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.
- GoI will co-contribute to each eligible subscriber, for a period of five years who joins the scheme between the period June 1, 2015 to December 31, 2015. The benefit of five years of government Co-contribution under APY would not exceed 5 years for all subscribers including migrated Swavalamban beneficiaries.
- All bank account holders may join APY.
- APY is applicable to all citizen of India aged between 18-40 years.
- Aadhaar will be the primary KYC. Aadhar and mobile number are recommended to be obtained from subscribers for the ease of operation of the scheme. If not available at the time of registration, Aadhar details may also be submitted later stage.