New Delhi: If you are worried over post-retirement financial stability, you need to start making investment today onward. Atal Pension Yojana (APY) is a popular scheme. You need to invest
a fixed amount per month in order to receive pension later.
- Under the APY, there is guaranteed minimum monthly pension for the subscribers ranging between Rs 1,000 and Rs 5,000 per month.
- The Central Government guarantees the the benefit of minimum pension.
- The central government also co-contributes 50 per cent of the subscriber’s contribution or Rs. 1000 per annum, whichever is lower.
- Notably, Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.
- All citizen of India aged between 18-40 years are eligible to subscribe to Atal Pension Yojana.
- All bank account holders can join APY.
- If the age of entry is at 18 years, then the individual needs to pay Rs 42 per month to get a monthly pension of Rs 1000, Rs 84 per month for Rs 2000 monthly pension, Rs 126 per month for
Rs 3,000 monthly pension, Rs 168 per month for Rs 4,000 monthly pension, and Rs 210 per month for Rs 5,000 monthly pension.
- This means you need to invest Rs 7 per day (Rs 210 on a monthly basis) to receive a pension of Rs 5,000 per month or Rs 60,000 per annum.
One must note that discontinuation of payments of contribution amount will lead to following:
• After 6 months Atal Pension Yojana account will be frozen.
• After 12 months APY account will be deactivated.
• After 24 months Atal Pension Yojana account will be closed.
Hence, Atal Pension Yojana subscribers must ensure that the Bank account to be funded enough for auto debit of contribution amount.
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