This pension scheme has given nearly 9% return since inception; take a look

As of date, the total assets under management (AUM) in the said scheme is more than Rs 27,200 crore.

The scheme is administered by the PFRDA via NPS architecture. Representative image. Source: Unsplash

Atal Pension Yojana, the government-backed pension scheme, enrolled over 1.19 crore new subscribers in fiscal 2022-23 as compared to 99 lakhs in the last financial year, thus registering a growth of more than 20 per cent on an annual basis. Additionally, the total enrollment under Atal Pension Yojana (APY) crossed the 5.20 crore mark by March 31, 2023.

As of date, the total assets under management (AUM) in APY is more than Rs 27,200 crore and the scheme has generated an investment return of 8.69 per cent since the inception of the scheme, PFRDA said in its press release dated April 21.

Atal Pension Yojana - all you need to know

In order to provide income security to the workforce below the poverty line in an unorganised sector during their old age, the Government of India, in the 2015-16 Budget, announced a scheme called Atal Pension Yojana (APY). The scheme is focused on encouraging and enabling them to save for their retirement. Further, its aim is to address the longevity risks among the workers in the unorganised sector and to encourage the workers in the unorganised sector to voluntarily save for their retirement. The APY scheme replaced Swavalamban Pension Yojana in 2015. Remember, the APY is focussed on all citizens in the unorganised sector. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture. NPS stands for National Pension System.

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Atal Pension Yojana: Key Highlights

Under the APY, there is a guaranteed minimum monthly pension for subscribers ranging between Rs 1,000 and Rs 5,000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY. The minimum age for joining APY is 18 years and the maximum age is 40 years. Therefore, the minimum period of contribution by any subscriber under APY would be 20 years or more. The benefit of a fixed minimum pension would be guaranteed by the Government. The APY was introduced on June 1, 2015.

• GoI will also co-contribute 50 per cent 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 the income tax payer.

• GoI will co-contribute to each eligible subscriber, for a period of five years who joins the scheme between June 1 2015 and 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.

Eligibility criteria

• APY is applicable to all citizens of India aged between 18-40 years.

• Aadhaar will be the primary KYC (know your customer). Individual needs to provide their Aadhar card details and mobile numbers to enrol on the scheme.

Subscribers can exit APY once they attain 60 years of age. The exit is permitted with a 100 per cent annuitisation of pension wealth. Annuitisation is the process that converts the money you've invested in an annuity into regular payments as part of your retirement plan.

In case of the death of the subscriber due to any cause, the pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee. Also, exit before 60 years of age is not permitted; however, it is permitted only in exceptional circumstances, i.e., in the event of the death of a beneficiary or terminal disease, as per information fetched from the NSDL site.

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