While existing NPS Swavalamban account holders could migrate to APY, the latter scheme has become the primary option for individuals seeking a government-backed pension.
APY offers a guaranteed minimum pension after the age of 60, making it a preferred choice for retirement savings.
NPS Swavalamban was a government-backed pension scheme aimed at providing financial security to the unorganised sector. However, it was discontinued in 2015. To ensure a more robust and accessible pension system, the government introduced the Atal Pension Yojana (APY).
APY offers a guaranteed minimum pension after the age of 60, making it a preferred choice for retirement savings. While existing NPS Swavalamban account holders could migrate to APY, the latter scheme has become the primary option for individuals seeking a government-backed pension.
APY is a government-backed pension scheme designed to provide old-age income security, especially for the unorganised sector. It offers a guaranteed minimum pension after the age of 60.
Key Features: Atal Pension YojanaÂ
- Guaranteed Minimum Pension: You can choose a guaranteed minimum pension of Rs. 1000, 2000, 3000, 4000, or 5000 per month at the age of 60.
- Eligibility: Any Indian citizen aged between 18 and 40 with a savings bank account can join.
- Contribution: The contribution amount varies based on your age and chosen pension amount.
- Government Support: The government provides a partial subsidy to eligible subscribers.
- Pension for Spouse: After the subscriber’s death, the spouse receives the same pension.
- Death Benefit: The accumulated corpus is returned to the nominee after the death of both the subscriber and spouse.
Benefits: Atal Pension YojanaÂ
- Secure Retirement: Ensures a regular income after retirement.
- Government Backed: Provides security and trust.
- Flexibility: Choose your desired pension amount.
- Tax Benefits: Contributions may qualify for tax deductions.
How to Join: Atal Pension YojanaÂ
You can join APY through most commercial and regional rural banks.
NPS Swavalamban and Atal Pension Yojana (APY): The Link
NPS Swavalamban and APY are both government-backed pension schemes aimed at providing financial security during retirement, particularly for the unorganised sector. However, there are key differences and a transition period between the two.
Key Link: Migration
The primary link between the two is the migration option offered to existing NPS Swavalamban subscribers.
NPS Swavalamban is no longer open for new registrations. The scheme was discontinued on April 1, 2015.
Subscribers aged 18-40: These subscribers were given the option to migrate their NPS Swavalamban account to the Atal Pension Yojana. This migration process allowed them to continue their pension savings while benefiting from the guaranteed pension feature of APY.
Subscribers aged above 40: Those who couldn’t migrate to APY due to age restrictions could continue with their NPS Swavalamban account until they reached 60 years of age.
In essence, APY was introduced as a successor to NPS Swavalamban with enhanced features and broader accessibility.
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