Atal Pension Yojana (APY) is formerly known as Swavalamban Yojana. In India, APY is a pension scheme backed by the government with its main aim at the unorganized sector such as gardeners, maids, delivery boys, etc. Those who work in private sectors, or working with an organization which does not provide them pension benefit can also opt for APY. In the Budget speech of 2015, the former Finance Minister Arun Jaitley introduced the idea of APY. Finally, it was launched by PM Narendra Modi on 9 May in Kolkata.
This scheme's vital goal is to ensure and provide a sense of security to the Indian citizens that they don't need to worry about accidents, illness or disease in old age as this scheme will back them and their expenses. There are multiple options available in this scheme of getting a fixed pension ranging from Rs 1000 to 5000 per month on attaining an age of 60. It will be determined based on the individual’s age and contribution. A minimum period of contribution by the subscriber under APY would be 20 years and above. The spouse of the contributor may claim the pension when the contributor passes away, and when the contributor along its spouse passes away, the accumulated corpus will be received by the nominee. However, before completing 60 years of age if the contributor dies, its spouse will also be given the option to exit the scheme and claim the corpus or continue with the scheme for the remaining period.
The Government of India has designed the investment pattern in a way where the accumulated amount under APY scheme will be managed by the Pension Funds Regulatory Authority of India (“PFRDA”).