Atal Pension Yojana: Only 8% Subscribers Opt for 5,000 Monthly Pension Slab
Despite high enrolments, a small fraction of Atal Pension Yojana subscribers choose the highest pension slab, indicating a preference for minimum benefits.
Source: Livemint EconomyThe Atal Pension Yojana (APY), launched in 2015, has achieved over 90 million enrolments. However, data reveals that only 8% of its subscribers opt for the highest monthly pension slab of 5,000. A significant majority, 87%, choose the minimum pension sum of 1,000 per month. The scheme has seen substantial participation from younger age groups. As of March 31, the persistency rate for APY stood at 50.1%. This indicates that about half of the enrolled subscribers continue to contribute to the scheme over time.
This news highlights the participation trends and financial choices within a key government social security scheme. For exams, understanding APY's features, subscriber demographics, and contribution patterns is crucial. It connects to topics like social security, financial inclusion, and government welfare programs under the Economy and Government Schemes sections of the syllabus.
- Atal Pension Yojana (APY) was launched in the year 2015.
- APY has recorded over 90 million total enrolments.
- Only 8% of APY subscribers opt for the 5,000 monthly pension slab.
- A large majority, 87%, choose the minimum 1,000 monthly pension.
- The persistency rate for APY was 50.1% as of March 31.
A social security scheme launched by the Government of India in 2015. It aims to provide old age income security to workers in the unorganised sector. Subscribers receive a guaranteed minimum pension ranging from 1,000 to 5,000 per month after reaching 60 years of age.
In the context of insurance or pension schemes, persistency rate refers to the percentage of policyholders or subscribers who continue to pay their premiums or contributions over a specified period. A higher rate indicates better retention and scheme sustainability.
This sector includes enterprises that are not registered with the government and do not follow formal rules and regulations. Workers in this sector often lack social security benefits, fixed working hours, and job security. APY primarily targets this segment.
UPSC and SSC exams frequently ask about the launch year, target beneficiaries, and key features of government social security schemes like APY. Be prepared for questions on its administration and pension slabs.
Remember APY launched in '15 (2015) for 'Aam Aadmi' (common man) to get 'Pension' (APY).