Curated By: Business Desk
Last Updated: October 16, 2023, 12:36 IST
To get a pension of Rs 1,000 per month, you need to pay only Rs 42 monthly if you start from the age of 18.
After October 1, only those people who cannot pay income tax can apply for the Atal Pension Scheme.
Atal Pension Yojana is a government-run centralised scheme which aims to provide income security to old age people. It was introduced in the annual budget of 2015-16 of India to encourage workers in the unorganized sector to voluntarily save money for their retirement. This scheme is administered by the Pension Fund Regulatory and Development Authority ( PFRDA) through NPS architecture. Under this scheme, there is a guaranteed minimum monthly pension for the subscribers. It can range between Rs 1,000 to Rs 5,000 per month which varies according to the investments. This benefit is awarded by the central government.
All citizens between 18 and 40 years are eligible to become a part of this scheme. According to the new amendment in the scheme, after October 1, 2022, only those people who cannot pay income tax can apply for the Atal Pension Scheme. After 60 years of age, the user is guaranteed a monthly pension. This scheme proves as the best income resort after your retirement. If the APY user has died after retirement, the same pension amount will be transferred to the spouse monthly.
One of the highlights of this pension scheme is that it requires low investment but offers high returns. Under APY, if a maximum of Rs 5,000 is added to the scheme for a monthly pension at the age of 18 years, then you need to invest Rs 210 per month.
Similarly, if you decide to invest in the scheme at the age of 25 and aspire for a Rs 5,000 monthly payment then you need to contribute Rs 376 per month to the APY scheme. It highly depends on when you start the monthly investment to reap the retirement pension benefits It varies with age and time. To get a pension of Rs 1,000 per month, you need to only pay Rs 42 per month if you start from the age of 18 years.
Discontinuation of payments in the APY scheme can lead to the closure of accounts. If you are unable to pay for 6 months then your account gets frozen whereas after 12 months the government deactivates your account. After two years, if left unattended, then it leads to closure.
