Launched in May 2015 by the government of India the Atal Pension Yojana or APY is a flagship social security scheme for the masses of this country. It guarantees the contributor a minimum pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or 5,000 per month.
The pension will start flowing in every month when the contributor turns 60. The eligibility criteria for those joining the APY scheme is he/she has to be an Indian between 18 and 40 years. The contributor must have a savings account in either a bank or a post office.
APY calculator for Rs 5000 pension a month
The contributions can be paid monthly, quarterly or six-monthly. For example, to get a pension for at least Rs 5,000 a month, a 20-year-old needs to contribute only Rs 248 a month. If the person pays quarterly he/she has to pay Rs 739 and if paid on a six-monthly basis, the contribution comes to Rs 1,464.
At a slightly older age
If someone begins investing at the age of 30, he/she has to pay Rs 577 a month to get the same pension of Rs 5,000. Further, one should note that Rs 1,05840 is the total nominal investment in the above case. The total corpus built will be Rs 8,65,304, giving one a total gain of Rs 7,59,464.
If one goes for lower pension amounts, the contributions will be lower. For a monthly pension of Rs 4,000, a 20-year-old has to pay Rs 168 a month, Rs 501 quarterly and Rs 991 if paid once a month. In this instance, the investment from the contributor’s pocket, the total corpus and the amount gained will be Rs 8,46,72, Rs 6,92,243 and Rs 6,07,571 respectively.
Atal Pension Yojana: Pension of Rs 3000
For a pension of Rs 3,000, a 20-year-old must pay Rs 126, Rs 376 and Rs 744 if he/she is paying the contribution once a month, once in 3 months and once in every 6 months respectively.
Pension of Rs 2k, Rs 1k
To get a of Rs 2,000, a 20-year-old must pay Rs 84, Rs 250 and Rs 496 if he/she is paying the contribution once a month, once in 3 months and once in every 6 months respectively. For Rs 1,000 pension the contributions drop further – Rs 42, Rs 125 and Rs 248 respectively for once a month, quarterly or once in 6 months mode respectively.
The Atal Pension Yojana is a scheme for citizens of India designed particularly for workers of the unorganised sector. It carries a guaranteed pension depending on the contribution by the subscribers. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
