Pension Scheme: It is never too early or too late to plan for the future as an adult. Securing an adequate pension is one of the most important things for a comfortable retirement.
The Atal Pension Yojana is one of the most popular pension schemes offered by the Government of India.
The scheme was chosen by over 28 lakhs of the 4.2 crore NPS subscribers by the end of the fiscal year 2020-21, according to the National Pension System Trust (NPS TRUST) annual report. With this government-guaranteed scheme, you can secure a monthly pension of up to Rs 5,000 or a yearly pension of Rs 60,000 for an individual. Let us know more about the scheme's advantages and how to apply.
Advantages of APY
Those who choose the pension scheme will receive a guaranteed pension once they reach the age of 60. Furthermore, under Income Tax Act 80C, the Atal Pension Scheme provides an individual tax benefit of Rs 1.5 lakh.
Who all are eligible for APY?
All Indian citizens between the ages of 18 and 40 can open an APY account. The individual must have a bank savings account, an Aadhaar card, and a mobile phone number. Aadhaar will be the primary form of identification for APY registration.
APY investment details
The amount required to be invested each month under APY is determined by the pensioner's age. A person starting at the age of 18 will need to contribute Rs 210 per month for a monthly pension of Rs 5,000. This sum will be Rs 248 at the age of 20. The monthly contribution will be Rs 376 or Rs 577 starting at the age of 25 or 30. A 35-year-old investing in APY for a Rs 5,000 pension will need to contribute Rs 902 per month, while the amount will be Rs 1454 if the entry age is 40.
How do you apply for APY?
Individuals can apply for APY by visiting the branch of their bank or post office where they keep their savings account. Individuals can also join the pension scheme online using net banking or the new Aadhaar e-KYC option.
It should be noted that failing to make APY contributions will result in the account being frozen, deactivated, and eventually closed. Individuals who choose to participate in the scheme should ensure that their bank account has enough funds to cover the monthly auto-debit of contribution amounts.
About Atal Pension Yojana (APY)?
Launched in 2015 with an initial focus on those living in unorganized areas, the scheme was later expanded to include all Indian citizens who meet the age eligibility criteria.
The amount invested in APY varies depending on the individual's age at the time the account is opened. With five different options, a person can secure a monthly pension ranging from Rs 1,000 to Rs 5,000 (in multiples of 1,000).
