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Atal Pension Yojana extended

Tuesday, September 20, 2016 by Indian Real Estate News

The government has extended the Atal Pension Yojana (APY) till March 2016. Under the scheme, the government contributes 50% of the subscriber's contribution, up to `1,000 per annum, for a period of five years. This was for people who joined the scheme before 31 December 2015. Now, the deadline for joining has been extended by three months.

"This measure is likely to benefit a substantial number of people who have not been able to join APY and, therefore, have failed to avail of the benefit of co-contribution by the government," read a Finance Ministry statement. According to the ministry's data, the number of subscribers under APY had grown to 1.8 crore till 16 January 2016.

 

The scheme provides a minimum government guaranteed monthly pension, ranging from `1,000 to `5,000.

The scheme was announced to address the longevity risks among workers in the unorganised sector and to encourage them to voluntarily save for their retirement. Last year, the government had modified APY to widen its reach and increase its acceptability among informal sector workers.

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