The Atal Pension Yojana is a central government scheme for income security in the old age and is focused on all citizens in the unorganised sector.
Post-retirement saving is the most crucial aspect of financial planning as it provides you significant support in your old age. A scheme that can help you save for post-retirement financial support is the Atal Pension Yojana. The scheme can provide you Rs 5,000 per month pension on a monthly contribution of just Rs 689 if you are currently at the age of 32 years. The monthly contribution will be just Rs 210 (Rs 7 per day) if you are 18 years of age.
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What is Atal Pension Yojana?
Announced in the Budget 2015-16, the Atal Pension Yojana is a central government scheme for income security in the old age and is focused on all citizens in the unorganised sector. The government is making efforts on encouraging and enabling people to save for their retirement. To address the longevity risks among the workers in the unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement.
The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System (NPS) architecture.
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Under the Atal Pension Yojana, there is guaranteed minimum monthly pension for the subscribers ranging between Rs 1,000 and Rs 5,000 per month. The benefit of the minimum pension would be guaranteed by the Government of India.
The Centre contributes 50 per cent of the subscriber’s contribution or Rs 1,000 per annum, whichever is lower. Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.
Atal Pension Yojana is available to all citizens of India aged between 18 and 40 years.
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How To Get Rs 5,000 Pension?
First of all, the early you start investing under the scheme, the lesser monthly amount you need to contribute. Anyone who is joining at the age of 18 will have to contribute just Rs 210 per month (Rs 7 per day) to get a guaranteed monthly pension of Rs 5,000.
Those planning at the age of 40 years to start investing and get a pension of Rs 5,000 can do so by investing Rs 1,454 per month till the age of 60 years. This will ensure you a minimum monthly pension of Rs 5,000. If you can’t invest Rs 1,454 per month, then the scheme also has other options for you.
If you are at the age of 32 years, you will have to contribute Rs 689 per month to get a guaranteed monthly pension of Rs 5,000.
