 "Pension")
The growth in enrolments of Atal Pension Yojana (APY) in FY23, which is targeted at unorganised sector workers, saw 24 per cent growth for the minimum pension of Rs 1,000 while enrolments under higher pension slabs declined during the year.
Enrolments under the pension slabs of Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000 declined by 5.3 per cent, 8.2 per cent, 10.6 per cent and 12.6 per cent, respectively, in FY23. This data has been provided by the Pension Fund Regulatory and Development Authority (PFRDA).
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The share of enrolments under these pension slabs out of the total new enrolments in a financial year declined from 61.4 per cent in FY16 to 7.9 per cent in FY23.
A senior PFRDA official said the majority of unorganised workers, who opted for the Rs 1,000 slab, are in the age group of 21-30 years. Thirty years down the line, the amount is meagre to enable them to fulfil even their basic necessities.
“The beneficiaries of this scheme need to fulfil their current day-to-day requirements, thus hindering their ability to contribute a higher amount under the scheme,” he added.
Enrolments under the slab of Rs 1,000 saw a growth of 24 per cent to around 11 million in FY23. This was because all the 17 states with enrolments of over one million till FY23 witnessed growth in this segment, except Bihar where it declined by 7.2 per cent.
The highest growth was recorded in Haryana and Punjab at 62 per cent and 52 per cent, respectively. Among the 17 states, Uttar Pradesh, Madhya Pradesh, West Bengal, and Punjab are the only states that saw growth in collective enrolments in pension slabs between Rs 2,000 and Rs 5,000 in FY23.
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A senior banking official said that the target given to public sector banks (PSBs) on APY is based on the number of enrolments, irrespective of the pension amount.
“It is also easier for the bank to board beneficiaries within the minimum pension slab and achieve their targets,” he added.
He said, “The beneficiary has the option to shift to a higher pension slab with increased contribution.”
In terms of amount-wise enrolments, about 82 per cent subscribers opted for the least amount of Rs 1,000 per month. This was followed by 11 per cent opting for the highest amount of Rs 5,000 per month.
The APY is a central government scheme that was launched in 2015. The minimum age for joining is 18 years and the maximum age is 40 years.
A subscriber under APY is required to make a monthly/quarterly/six monthly contribution determined by the amount of pension chosen and the age of joining the scheme.
The subscriber will receive a government-guaranteed minimum pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000 per month, after the age of 60 until death, depending on the contribution chosen.
