Government schemes with monthly pension: Once you become an adult, it is never too early or too late to plan for the future. Securing adequate amount as pension is one measure necessary for a comfortable retirement. One of the most popular pension schemes from the Government of India is the Atal Pension Yojana. The scheme was chosen by over 28 lakh of the 4.2 crore subscribers of NPS by the end of the financial year 2020-21, the annual report of the National Pension System Trust (NPS TRUST) revealed. With this scheme guaranteed by the government, you can secure a pension of up to Rs 5,000 per month or Rs 60,000 per year for an individual. Let us know more about the scheme’s benefits and how to apply.
What you need to know about Atal Pension Yojana (APY)?
Launched in 2015 with the focus initially on those in the unorganized areas, the scheme was later extended to all citizens of India who fall under the age eligibility criterion. Investment amount in APY varies depending on the age of the individual at time of opening the account. A person can secure a monthly pension of anywhere between Rs 1,000 and Rs 5,000 (in multiples of 1,000) with five different options.
Benefits of APY
Persons opting for the pension scheme will be receiving guaranteed pension after attaining the age of 60. Furthermore, the Atal Pension Scheme also offers individual tax benefit of Rs 1.5 lakh under Income Tax Act 80C.
Eligibility for APY
All Indian citizens between the age of 18 and 40 years are eligible to start an APY account
The person must have a bank savings account, Aadhaar card and a mobile number. Aadhaar will be the primary KYC for APY registration.
APY pension scheme investment details
Under APY, the amount required to be invested every month depends on the age of the pensioner.
For Rs 5,000 monthly pension, a person starting at 18 years of age will need to contribute Rs 210 per month. At the age of 20, this amount will be Rs 248. Starting at 25 or 30, the monthly contribution will be Rs 376 or Rs 577, respectively. A 35-year-old person investing in APY for a Rs 5,000 pension will need to contribute Rs 902 monthly, while the amount will be Rs 1454 is entry is at 40 years of age.
How to apply?
Individuals can apply for APY by approaching their bank’s branch or post office branch in which they hold their savings account. Individuals can also join the pension scheme online through netbanking or the recently added Aadhaar e-KYC option.
It should be noted that defaulting on contributions to APY invite freezing, deactivation and eventual closure of the account. Individuals opting for the scheme should ensure their bank account has enough money for auto-debit of contribution amounts every month.
READ | 7th Pay Commission: Will central government employees get 18-month DA arrear? Know here