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The Atal Pension Yojana (APY) is a social security scheme introduced by the Government of India. It is primarily aimed at providing pension benefits to workers in the unorganized sector who often do not have access to formal pension plans.
Here are some key features and details about the Atal Pension Yojana:
1. Target Audience : APY is targeted at workers in the unorganized sector, such as laborers, maids, drivers, and other low-income individuals.
2. Age Eligibility: Any Indian citizen between the ages of 18 to 40 years can join the scheme.
3. Pension Amount: The pension amount depends on the contribution made and the age at which the individual joins the scheme. The scheme offers fixed monthly pension amounts ranging from Rs. 1,000 to Rs. 5,000.
4. Contributions: Subscribers are required to make regular contributions to the scheme until they reach the age of 60. The contribution amount is based on the age of entry, desired pension amount, and the number of years remaining until the subscriber turns 60.
5. Government Co-Contribution: To encourage participation, the government provides a co-contribution to eligible subscribers. This co-contribution is available for those who meet certain criteria.
6. Guaranteed Pension: APY provides a guaranteed pension amount to subscribers once they reach the age of 60. In case of the subscriber's death, the spouse can receive the pension, and in the absence of both, the nominee can receive a lump sum amount.
7. Penalties: If a subscriber misses payments, they may incur penalties, and their account may become inactive if contributions are not made for a specified period.
8. Exit and Withdrawal : Subscribers can exit the scheme before the age of 60 under certain conditions, but they will not receive the government co-contribution. The accumulated corpus can be withdrawn upon reaching the age of 60.
The Atal Pension Yojana was launched as part of the government's efforts to promote financial inclusion and provide social security to workers in the unorganized sector. It aims to ensure that people in this sector have access to a regular pension income in their old age, thereby improving their financial security.
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