Atal Pension Yojana: The benefits of Atal Pension Yojana, which has become the most beneficial pension scheme for the poor and weaker sections, can now be doubled. Modi government can double its benefits in the coming budget.
Atal Pension Yojana: To increase social security benefits, the Modi government is planning to double the minimum guaranteed pension under the Atal Pension Yojana (APY) to Rs 10,000. The proposal is currently in the final stages of approval and is believed to be announced in the Union Budget 2025 to be presented on February 1. This proposal has almost been agreed upon.
According to Moneycontrol, with a possible increase in the minimum pension amount, the scheme is set to provide more financial stability and security to the weaker sections of India. The scheme was launched by Prime Minister Narendra Modi on 9 May 2015. It aims to provide income security in old age, especially for the poor, the deprived and the workers of the unorganized sector. It intends to strengthen financial inclusion and provide a security cover for those who do not have formal retirement benefits.
How many accounts have been opened now
Currently, the scheme guarantees a pension of Rs 1,000 to Rs 5,000 per month depending on the subscriber’s contribution after the age of 60 years. As of October 2024, more than 7 crore total enrollments were registered in the Atal Pension Yojana (APY), including more than 56 lakh new subscribers during the financial year 2024-25. The Pension Fund Regulatory and Development Authority (PFRDA) has played an important role in promoting this scheme.
How much pension is received
The scheme currently allows subscribers to contribute a nominal amount, starting from Rs 42 per month for an 18-year-old person. This means that by depositing Rs 42 per month, one gets the option of a monthly pension of Rs 1,000. The maximum contribution is Rs 1,454 per month for a 40-year-old person, which gives a monthly pension of Rs 5,000.
Family gets insurance cover
The spouse of the subscriber is also covered under this scheme, which ensures the same pension for life even after the death of the subscriber. After the death of both the subscriber and their spouse, the contributed amount and interest is returned to the nominee. Finance Minister Nirmala Sitharaman said in early 2024 that the scheme ensures continuity of premium payment, unless the subscriber chooses to discontinue it. She also said that the scheme guarantees a minimum return of 8 percent, which is more interest than FD.
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