An investor gets the option of getting a fixed pension ranging from Rs 1,000, to up to Rs 5,000 after 60 years of age. The exact pension amount, however, can only be determined based on one’s age and the contribution one makes.
While planning your finances, you need to go for the right investment options. This is true while choosing a monthly pension plan too. For instance, the Atal Pension Yojana (APY) is aimed at the unorganized sector and is administered by the Pension Fund Regulatory and Development Authority (PFRDA). This pension plan encourages people from the unorganized sector to voluntarily save for their retirement.
Experts say one can get the maximum benefit of the scheme if one opts for this scheme at an early age. After reaching 60 years of age, this scheme comes with the option of getting a fixed pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000.
What does the APY scheme offer?
An investor gets the option of getting a fixed pension ranging from Rs 1,000, to up to Rs 5,000 after 60 years of age. The exact pension amount, however, can only be determined based on one’s age and the contribution one makes.
For instance, depending on the age one starts contributing under this scheme and the pension slab he/she chooses, the contributions might vary from Rs 42 to Rs 1,318 per month. If a 22-year-old individual aim to get a monthly pension of Rs 1,000, he/she needs to contribute Rs 59 per month. To get a monthly pension of Rs 5,000, the same depositor will have to contribute Rs 292 per month, less than even Rs 10 a day.
Starting at 18 years up to the age of 39 years, one can invest in this scheme, however, the pension amount will be payable only after the investor attains 60 years of age.
The spouse or the nominee can claim the pension, in case of death of the depositor. However, if the depositor dies before reaching 60 years of age, the scheme can be either continued for the balance period or exited, depending on the spouse. According to PFRDA, there is the option of premature exit, in the event of death or terminal disease of the depositor.
Source: NDLS
To apply for the Atal Pension scheme, you can visit any bank, almost all nationalized banks provide the option to opt for the scheme. The forms for the pension scheme are also available online, which can be accessed from the official website of banks.
