India’s ambitious social security scheme, the Atal Pension Yojana (APY), has become a retirement support for millions of people today. The most significant feature of this scheme is that by depositing only ₹210 per month, a lifelong pension of ₹5000 per month can be guaranteed after reaching the age of 60.
If you wish to arrange a pension for yourself after retirement, the Atal Pension Yojana (APY) could be the right option for you. Through this scheme, you can provide financial security for your old age. Here are the details about the scheme…
Investment required for 20 years Under the Atal Pension Yojana, a pension ranging from ₹1000 to ₹5000 per month is provided upon turning 60. Individuals between 18 and 40 years of age can invest in it. If a person enrolls in this scheme, they must invest for at least 20 years.
Investment amount determined by your pension goal The amount deducted from your account for investment in this scheme will depend on how much pension you desire after retirement. To receive a pension of ₹1000 to ₹5000 per month, a subscriber must pay between ₹42 and ₹210 per month. This applies if the scheme is taken at the age of 18.
If a subscriber enrolls at the age of 40, they must contribute between ₹291 and ₹1,454 per month. The higher the contribution made by the subscriber, the higher the pension they will receive after retirement.
If an 18-year-old person deposits monthly…
- ₹42, they will receive a monthly pension of ₹1000 after turning 60.
- ₹84, they will receive a monthly pension of ₹2000.
- ₹126, they will receive a monthly pension of ₹3000.
- ₹168, they will receive a monthly pension of ₹4000.
- ₹210, they will receive a monthly pension of ₹5000.
If a 40-year-old person deposits monthly…
- ₹291, they will receive a monthly pension of ₹1000 after turning 60.
- ₹582, they will receive a monthly pension of ₹2000.
- ₹873, they will receive a monthly pension of ₹3000.
- ₹1164, they will receive a monthly pension of ₹4000.
- ₹1454, they will receive a monthly pension of ₹5000.
Installments can be paid according to convenience Under this scheme, investors can contribute monthly, quarterly, or semi-annually (every 6 months). Contributions will be auto-debited, meaning the fixed amount will be automatically deducted from your account and deposited into your pension account.
Pension provided to spouse after subscriber’s death After the subscriber’s death, their spouse will receive the same pension amount. Upon the death of both the subscriber and the spouse, the pension amount accumulated until the age of 60 will be returned to the nominee.
Taxpayers are not eligible for the scheme The Atal Pension Yojana is not for taxpayers. If you pay income tax, you cannot open an account under this scheme. This rule was implemented by the government on October 1, 2022.
