What are the benefits of the Atal Pension Yojana Scheme?

The Atal Pension Yojana is one of the most beneficial social security schemes introduced by the Government in the year 2015-16. As a part of the scheme, people can make contributions in their Atal Pension Yojana account till the age of 60 years and get a monthly pension. This is a beneficial, since it provides people with an assured minimum pension sum to meet their expenses after they turn 60 years of age.

The Atal Pension Yojana is very simply structured, which makes it easy to understand for anyone who wants to open an account under the scheme. All major banks offer the scheme to their customers who want to open accounts under the scheme. The scheme is based on contributions from the depositor up to the age of 60 years. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Here are the different Atal Pension Yojana benefits to know about:

• Death benefits:
  
  The Atal Pension Yojana death benefits accrue to the spouse of the contributor. On death of the contributor, the pension automatically vests to the spouse who is the default nominee. In case of death of the contributor and the spouse, the nominee will get the predefined corpus amount for the particular pension slab. In case of death of the contributor before the age of 60 years, the spouse has an option to continue the Atal Pension Yojana account and receive benefits under it or close the account and receive the contributions made and the gains on it.

• Retirement benefits:
  
  The main Atal Pension Yojana benefits is the retirement benefit. Depending on the contributions made, the monthly pension will be paid out. There are different pension amounts Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs. 5,000. The contribution amounts for these pensions is different. In case of death of the subscriber, the pension is paid to the spouse.

• Tax benefits:
  
  To give an impetus to people to invest in the Atal Pension Yojana, the Government is giving tax benefits on contributions made to the scheme. The Atal Pension Yojana tax benefits can be availed under Section 80CCD  (1B), to the tune of Rs. 50,000 over and above the Rs. 1.5 lakhs. This will help to reduce the taxable income of the subscriber.

With these benefits, it is a good decision to contribute  to ensure pension is received. The Atal Pension Yojana has simple terms and conditions which make it easy for the contributors to understand. Are you opening an account today?

Want to know more about opening an Atal Pension Yojana account scheme? Click here to read more!

To get your very own Atal Pension Yojana Account in HDFC Bank, you need to visit your closest bank branch. Click to get started!

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice ​​​​​​​