Atal Pension Yojana (APY) was launched by Prime Minister Narendra Modi on May 9, 2015. Under this scheme, one can get a pension of Rs 1,000 to Rs 5,000 per month. Earlier, the pension plan’s advantage was available to all people of all ages irrespective of their financial background. However, the recent change says that people paying taxes cannot opt for the scheme. More than 5 crore people have already registered for the scheme as of now.
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To get a pension of Rs 5000 per month, one has to balance their age and investment. This article will explore how much money one has to invest every month in this scheme to get a pension of Rs 5000 a month and how long one has to keep investing.
Let us suppose that one starts investing in the APY scheme at the age of 18. If they want a pension of Rs 5000 per month after their retirement, they will have to invest Rs 210 every month until they turn 60 years old. If one decides to deposit Rs 168 a month for the same duration, one will be eligible to withdraw Rs 4,000 every month. Depositing a meagre amount of Rs 126 has to be deposited in the scheme to get Rs 3,000 as a pension per month. The amount that has been deposited at the rate of Rs 84 a month, the person can avail of a pension of Rs 1,000.
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If a 40-year-old starts investing in the scheme, he or she must invest Rs 1,454 per month until they turn 60 to avail themselves of a pension of Rs 5,000 a month. Similarly, for Rs 4,000 a month, the investment amount drops to Rs 1,164; for Rs 3,000 a month, the amount drops to Rs 873; for Rs 2,000 a month, the amount to be invested is Rs 873 and for Rs 1,000 a month, the amount to be invested is Rs 582.
It is not necessary to pay the installment every month. One can opt for payment of cumulative installments every 3 or 6 months. If the subscriber of the scheme dies, the pension will be given to the spouse. If both die, the amount will be deposited in the nominee’s bank account.
