**Atal Pension Yojana (APY)** is a government-backed pension scheme launched by the Government of India in May 2015, primarily aimed at providing social security to workers in the unorganized sector.
### Key Features:
1. **Guaranteed Monthly Pension**: Subscribers receive a fixed pension of ₹1,000 to ₹5,000 per month after the age of 60, depending on their contributions.
2. **Eligibility**:
* Age: 18 to 40 years at the time of joining.
* Must have a savings bank account (preferably linked to Aadhaar).
* The earlier you join, the lower the monthly contribution.
3. **Contribution**:
* Monthly contributions depend on the age at which the person joins and the pension amount chosen.
* Contributions are auto-debited from the subscriber’s bank account.
4. **Government Co-contribution**:
* The government co-contributed 50% of the total contribution or ₹1,000 per annum (whichever is lower) for eligible subscribers for 5 years, for those who joined the scheme between June 1, 2015, and March 31, 2016 (this benefit is no longer available for new subscribers).
5. **Tax Benefits**:
* Contributions to APY are eligible for tax deduction under Section 80CCD(1) of the Income Tax Act.
6. **Exit and Withdrawal**:
* Upon reaching 60 years: Full pension benefits begin.
* In case of death before 60: The spouse can continue the scheme or withdraw the accumulated corpus.
* Premature exit is allowed only in case of terminal illness or death.
7. **Target Group**:
* Workers in the unorganized sector such as farmers, laborers, and small traders.
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