The Government of India has come up with the Unified Pension Scheme (UPS) for central government employees, which will include an estimated 2. 3 million workers. If the state governments too pitch in, then this number can go up to 10 million! For those working in the unorganized sector, there’s a fantastic alternative: – the Atal Pension Yojana (APY). Currently, 56 million people since March 2024 have benefited from this scheme.
The Atal Pension Yojana introduced in 2015 is targeted at the unorganized sector of the Indian population. It remains open for registration if you are between 18-40 years of age. Here, you have to save a small amount of money each month and when you are old, the government will pay you a pension. However, the taxpayers cannot benefit from this particular scheme.
Atal Pension Yojana: How much pension will you get?
You can contribute every month, every quarter, bi-annually or until you reach the age of sixty years. Upon retirement, you get a pension of ₹1,000 – ₹5,000 based on the amount you contribute monthly. For instance, if one is 18 years old and contributes ₹42 every month, you will receive ₹1,000 per month when you are of retirement age. So, if an individual is 40 years of age and decides to pay ₹1,454 per month, s/he will receive ₹5,000 per month post-retirement.
If you have been contributing ₹210 every month since you were 18 years old, your payout per month after you retire will be ₹5,000. In the event of your death, your spouse will be entitled to the same pension amount as you. Also, your nominee will be paid all the money that you contributed in a lump sum.
Managing APY Funds
The money from this plan is invested in LIC Pension Fund, SBI Pension Fund, and UTI Pension Fund. They manage investments cautiously, placing up to 15% of the investment value in stocks while placing the rest in safer assets. Currently, they control a sum of ₹39,000 crore as of July.
How to open an APY Account
You can open an APY account at government and major private banks, or post offices. You can also use the eNPS portal and mobile apps like ‘APY and NPS Lite’ to track your account. In sum, the Atal Pension Yojana offers flexibility in saving for the retirement of the people in the unorganized sector backed by the government.
Explore the Atal Pension Yojana (APY), designed to secure retirement for unorganized sector workers. Here is all the information needed to open an account for you. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
