If you’re looking to apply for a pension scheme, you should consider the Atal Pension Yojana, launched recently by the Government of India. This program has been created for all citizens of India, and is focussed especially on those working in unorganised sectors with no formal pension provisions.

Apart from the Atal Pension Yojana, a number of government-announced insurance schemes were introduced as well in 2015. The Government, in the previous year, had also implemented the Pradhan Mantri Jan Dhan Yojana throughout the country.

The Atal Pension Yojana offers a number of advantages that are complementary to the benefits of Pradhan Mantri Jan Dhan Yojana. Below, we’ll be looking into how this scheme actually works.

A Few Benefits

This program provides guaranteed pension to subscribers after they’ve reached the age of 60. Depending upon the monthly payments you make, you’ll be eligible for a pension that ranges from INR 1000 to INR 5000. In some cases, the Indian Government will shoulder the burden and pay 50% of the subscriber’s annual pension payments or INR 1000, whichever is lower.

This co-contribution will only be made for those subscribers who don’t pay income tax and who aren’t covered by other statutory social security schemes. What’s more, the Indian Government will make these co-contributions for a duration of 5 years.

Are You Eligible?

This is one of the most frequently asked questions on Atal Pension Yojana. Simply put, this program is open to all savings account holders between the ages of 18 and 40. You can apply for this scheme today if you hold an account in a participating institution like Bajaj Finserv. In order to avail of the scheme, you essentially need to be in a position to make monthly pension payments for at least 20 years.

Things to Keep in Mind

Whether you’re 18 or 38, you need to make your monthly payments on time once you subscribe to the scheme. This is one of the ground rules for Atal Pension Yojana. You’re charged a penalty every time you delay making a payment. For instance, INR 1 is deducted as a fee when you miss making a monthly payment of up to INR 100. Similarly, you’re charged a fine of INR 10 when you delay a pension contribution of more than INR 1000 per month.

Remember, after 6 month of non-payment, your pension account will be frozen, and after 12 months, it’ll be deactivated. If the same continues for 24 months, then your account will be permanently closed.

The Atal Pension Yojana offers the opportunity of storing some money for the future. If you think it matches your needs, then you should definitely apply for the scheme at a trusted company like Bajaj Finserv.