If you are worried about the post-retirement financial stability, then you need to start making investment from today onwards.
There are many pension schemes and one of them is Atal Pension Yojana (APY). This is a very popular scheme in which, you need to invest a fixed amount every month in order to receive pension later.
Benefits of Atal Pension Yojana
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Under Atal Pension Yojana, there is a guaranteed minimum monthly pension for the subscribers ranging between Rs 1,000 & Rs 5,000 / month.
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The Central Government guarantees benefit of minimum pension.
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Centre co-contributes 50% of subscriber’s contribution or Rs 1,000 per annum, whichever is lower.
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The co-contribution of government is available for those who are not covered by any Statutory Social Security Schemes and it is not income tax payer.
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All citizen of India aged between 18 to 40 years are eligible to subscribe to the Atal Pension Yojana.
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All bank account holders can join the Atal Pension Yojana.
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If the age during the entry is 18 years, then you will have to pay Rs 42 every month to get monthly pension of Rs 1,000, Rs 84 per month for Rs 2,000 monthly pension, Rs 126 per month for Rs 3,000 monthly pension, Rs 168 per month for Rs 4,000 monthly pension & Rs 210 per month for Rs 5,000 monthly pension.
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This means you need to invest Rs 7 per day to receive a pension of Rs 5,000 per month or Rs 60,000 per annum.
One should note that the discontinuation of payments of contribution amount will lead to the following:
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After 6 months Atal Pension Yojana account will be frozen.
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After 12 months Atal Pension Yojana will be deactivated.
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After 24 months Atal Pension Yojana account will be closed.
Hence, the Atal Pension Yojana subscribers must ensure their Bank account has enough fund for the auto debit of contribution amount.
