Atal Pension Yojana: Are you 40 years old and want to get a guaranteed pension of Rs 5,000 per month? If yes, then you are looking at an investment option that gives guaranteed pension. The name of one such scheme is Atal Pension Yojana (APY). Here’s how you can get a guaranteed pension of up to Rs 5,000 every month with minimum investment
Atal Pension Yojana: Are you 40 years old and want to get a guaranteed pension of Rs 5,000 per month? If yes, then you are looking at an investment option that gives guaranteed pension. The name of one such scheme is Atal Pension Yojana (APY). Here’s how you can get a guaranteed pension of up to Rs 5,000 every month with minimum investment.
What is Atal Pension Yojana?
Atal Pension Yojana in Budget 2015-16 is a scheme of the Central Government to provide income security in old age. It has been created keeping in mind all the citizens of the unorganized sector. The government is trying to encourage people to save for their retirement. This scheme has been made to solve the income problems of workers in the unorganized sector after retirement. Atal Pension Yojana is run by the Pension Fund Regulatory and Development Authority (PFRDA).
You will have to pay Rs 210 every month
According to the current rules, if a maximum of Rs 5,000 is added to the scheme for monthly pension at the age of 18 years, then you will have to pay Rs 210 every month i.e. Rs 7 per day. If you pay the same amount every three months, you will have to pay Rs 626 and if you pay every six months, you will have to pay Rs 1,239. To get a pension of Rs 1,000 per month, if you invest at the age of 18, you will have to pay Rs 42 per month.
After 60, you will get a pension of Rs 5,000 every month.
The objective of Atal Pension Yojana is to bring every section of the society under the ambit of pension. Under the scheme, after making a fixed contribution in the account every month, you will get a monthly pension of Rs 1,000 to Rs 5,000. The government is guaranteeing a lifetime pension of Rs 5000 per month i.e. Rs 60,000 annually after the age of 60 years by investing only Rs 1239 every 6 months.
You will get more benefits if you join at a young age.
Suppose if you join for a pension of Rs 5,000 at the age of 35, then you will have to deposit Rs 5,323 every 6 months for 25 years. In such a situation, your total investment will be Rs 2.66 lakh, on which you will get a monthly pension of Rs 5 thousand. Whereas if you join at the age of 18, your total investment will be only Rs 1.04 lakh. That means, for a single pension, you will have to invest about Rs 1.60 lakh more.
