Senior citizens comprise one of the most financially vulnerable sections of India’s population. The principal reason: almost all of them stop working and earning. Moreover, this is the age when health starts to fail. Therefore, the need for a monthly pension for senior citizens is paramount. Let’s see some of the opportunities for regular cash flow at old age.
Atal Pension Yojana
Launched in May 2015, the Atal Pension Yojana, or APY, is a flagship scheme of the Centre to create a social security system for all Indians, especially those in the bottom parts of the economic pyramid. There are five fixed slabs of pension – Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000. It is guaranteed by the government and one can start contributing at the age of 18. But one cannot enroll after one turns 40. Payment of pension starts when the contributor turns 60.
National Pension System
The National Pension System or NPS is perhaps the most popular pension schemes among middle-class citizens. One can start contributing from the age of 18 and can contribute to it till the age of 75. The force of compounding helps create a huge pool of funds even with a small monthly contribution. For example, if one begins contributing Rs 1,000 a month from the age of 18, one will be entitled to a monthly pension of Rs 70,396 and a one-time payment of Rs 2.11 crore.
Indira Gandhi National Old Age Pension Scheme
This scheme entitles one to a monthly pension of Rs 200 to members of the BPL category. This amount is payable to one who is between 60 and 79 years. When one turns 80, the amount rises to Rs 500.
National Social Assistance Programme
This programme is also run by the government targeting senior citizens, widows and physically challenged people in the BPL category. The assistance comes every month and ranges from Rs 200 to Rs 500. If the earning member of the family expires, a one-time assistance of Rs 20,000 is paid to the next of kin.
Senior Citizens Day Pension schemes: Atal Pension Yojana (APY), National Pension System (NPS) are some of the pension schemes tailored for the elders. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
