11 Points – What are the Disadvantages of Atal Pension Yojana

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Atal Pension Yojana:-

The Ministry of Finance is launching a new Pension  Scheme on 1 June 2015 by the name of Atal Pension Yojana. The reason to launch  this Yojana is to provide Guaranteed Pension to unorganized  sector of India & secondly there was not good response in previous govt pension scheme i.e Swavalamban Scheme .

List of Disadvantages of Atal Pension Yojana-

  1. Government contribution in Atal Pension Yojana is 50 % of the premium or Rs 1000/- whichever is low but the govt’s contribution comes to you only if you join this scheme on or before 31 Dec2015. After that there will be no 50% contribution or Rs 1000/- contribution from Govt of India.
  2. Existing Subscriber of Swavalamban Scheme will automatically merge into Atal Pension Yojana, but if they want to stay in Swavalamban Scheme they need to inform.
  3. This Atal Pension Scheme is for an Indian whose Age is between 18 to 40. If a person whose age is above 40 or below 18, he/she cannot get this facility of Guaranteed Pension.
  4. Considering a retirement corpus of Rs. 1.7 lakh and monthly pension of Rs. 1,000, this scheme is going to generate a return of 0.59% per month or 7.1% per annul for its subscribers. I think this return is also on a lower side.
  5. If a person who is running Atal Pension Yojana dies before the age of 60, the nominee will only get only the deposited amount.
  6. In Atal pension Yojana it is not specified by the govt till now as what are Tax Benefits.
  7. In Atal pension Yojana it is also not declared that the interest you will be getting after the age of 60 is either Taxable or Tax free.
  8. Every Year you have to Renew this scheme in your respective bank.
  9. The premium would be auto debited from your bank account. If you are not having sufficient fund in you account at that time, what will be the exact treatment is not clarified as of now.
  10. If a person is running Atal pension Yojana because of some reason he is not able to pay the premium & requests a foreclosure of the pension account, what will be the Penalty, it is not clear.
  11. Atal Pension Yojana is only for those who are not enrolled in any pension Scheme like EPF, EPS .

Source:- http://pib.nic.in/newsite/PrintRelease.aspx?relid=116208

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1 Comment

  1. well, thanks for this information but i believe that this Yojana can also do wonders for the people under 40. The Atal Pension Yojana (APY) is interested in all Indians between the age of 18 and 40. This enables a person to contribute for no less than 20 years before receiving the rewards of the plan. Any financial balance holder who isn’t an individual from any statutory government disability plan can benefit of the plan. you can know everything about this Yojana here: http://www.atalpensionyojana.co.in/apy-benefits-advantages/

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