Atal Pension Yojana currently has over 69 lacs subscribers with contribution of Rs. 2690.00 crores. Chairman, Pension Fund Regulatory and Development Authority (PFRDA) however emphasized the need of increasing the pension coverage in India at a recently concluded conference on Atal Pension Yojana.
A large section of the society still does not have access to pensions and this is a cause of concern for PFRDA and Government. On an average, a little less than 2% of the eligible population is covered under APY and hence a lot has to be done to provide people a regular access to old age income.
While the government has a pension scheme for the BPL persons but the amount is meager and is not sufficient for old age needs. 9% of the population of India, i.e 110 million people is over 60 years and by 2030 this figure is expected to cross 180 million. The 60 plus age groups is the fastest growing demographic in the country. With increase in longevity of the people, disintegration of the joint family system in India, there is greater need for old age income than ever before. Currently pension benefits are available in India basically to the organised sector.
Atal Pension Yojana introduced in 2015 by Modi Government provides a self- contributory savings pension scheme with guaranteed pension of Rs. 1,000/- to Rs. 5,000/- with a very low contribution by the subscriber. All banks and Department of Post have pushed the product to the interiors of the country. APY has option for increasing the pension amount from Rs. 1000/- to any other amount up to Rs. 5000/- as per the savings capacity of the subscriber, and further allows the spouse to continue the account in the event of the death of the subscriber before the age of sixty years. PFRDA has also been engaging with various State Governments for providing co-contribution under the scheme. With the introduction of e-APY through Aadhaar, the banks will be able to effectively utilise the digital platform for greater coverage.