Swavalamban Pension Yojana: A Comprehensive Micro-Pension Solution

Introduced in 2010 by the Pension Fund Regulation and Development Authority (PFRDA), the Pension Yojana sought to transform retirement savings for India's unorganized sector. Although it is no longer active, examining its features offers valuable insights into micro-pension strategies.

Key Features and Benefits:

• Investment Parameters: Minimum: Rs. 1000/year; Maximum: Rs. 12,000/year. Government provided Rs. 1000 annually for 5 years.
• Investment Diversification: 15% in equity, 55% in government securities, 40% in corporate bonds.
• Statement of Transactions: Annual hard copy statements enhanced tracking and corpus monitoring.
• Nominee Facility: Options for lump-sum claim and continuation per norms.
• Targeted Beneficiaries: Focused on economically weaker sections like farmers and self-employed.
• Funding and Tax Benefits: Supported by government grants with tax benefits; returns varied with market conditions.

Discontinuation and Transition:

The Swavalamban Pension Yojana ended in 2016, replaced by the Atal Pension Yojana. Account holders could switch to the new scheme, maintaining their contributions.

Conclusion and Future Considerations:

In essence, the Swavalamban Pension Yojana offered secure retirement for the unorganized sector, featuring low investment thresholds, tax benefits, and diverse investments. Though discontinued, individuals can explore the Atal Pension Yojana for alternatives. Understanding micro-pension evolution is vital for informed decisions in retirement planning.