Atal Pension Yojana, often referred to as APY, was launched by Prime Minister Narendra Modi on May 9, 2015 in Kolkata. It is a scheme that was intended to offer pension to those above 60 towards the bottom of the economic pyramid a monthly pension. One must note that those who have paid income tax after October 1, 2022 cannot enlist for this pension scheme.
In order to become a contributor to the APY, the applicant should be between 18 and 40 years of age. He/she should have a savings account with any bank or post office. Mostly people who earn their living in the unorganised sector of the economy have enrolled for this scheme.
Atal Pension Yojana slabs
The USP of the scheme is the low amount of contribution that one needs to have a pre-defined pension when one turns 60. The monthly pension that one can apply for are Rs 1,000, 2,000, 3,000, 4,000 and 5,000.
Let’s consider a youth of 18 deciding to contribute for a monthly pension from the age of 60. If he/she settles for Rs 1,000, the monthly contribution will be as low as Rs 42 or Rs 1.40 a day. The point to note is that the person makes a total investment of Rs 21,168 till the age of 60 ie, for 42 years. Obviously, the monthly contribution will rise if one begins to invest at a later age to get the same amount of pension from 60.
Raise the monthly pension that he/she desires to Rs 2,000, and the monthly contribution turns to Rs 84. In this way, he/she makes a total contribution of Rs 42,336 from his/her pocket in 42 years.
For pension of Rs 3k, 4k, 5k
If someone desires to get a pension of Rs 3,000 a month, the contribution every month becomes Rs 126 a month provided contributions start at the age of 18. The total investment that one makes between 18 years and 60 years is Rs 63,504.
Raise the desired pension to Rs 4,000 a month and the monthly contribution becomes Rs 168. If one begins contributing Rs 210 every month, or Rs 7 a day, he/she is eligible for Rs 5,000 pension.
The popularity of the Atal Pension Yojana is evident from the fact that about 6 crore people have enlisted for this scheme. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
