PC: HDFC Sales
Atal Pension Yojana is a government-sponsored scheme aimed at providing income security to senior citizens. The scheme, launched as part of India's 2015–16 annual budget, encourages workers in the unorganized sector to voluntarily save for their pension. It is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System (NPS) architecture.
Under Atal Pension Yojana, beneficiaries are guaranteed a minimum monthly pension of ₹1,000 to ₹5,000 depending on the investment made. This benefit is provided by the Central Government.
All citizens between the ages of 18 to 40 years are eligible to participate in this scheme. After the recent amendments, only those who are unable to file income tax returns after October 1, 2022, can apply for Atal Pension Yojana. A guaranteed monthly pension is offered after the age of 60, making this plan an excellent source of income after retirement. In case of the unfortunate death of the beneficiary after availing of the scheme, the pension amount is transferred to the spouse on a monthly basis.
PC: OnManorama
An important attraction of this pension scheme is that it offers high returns with minimum investment. If you want a maximum monthly pension of ₹5,000 and start the plan at the age of 18, you will need to invest only ₹210 per month.
Similarly, if you decide to invest in the scheme at the age of 25 and aim for a monthly pension of ₹5,000, you will need to invest ₹376 per month in the APY scheme. The ideal time to start monthly investments to receive a retirement pension largely depends on the age and the tenure chosen, which varies accordingly. Starting from age 18, you have to pay only ₹42 per month to get ₹1,000 monthly pension.
PC: Zee Business
It is important to note that stopping payments can lead to account freezing, if payments are not made for six consecutive months the account can potentially be frozen. The government can deactivate the account if payment is not made for 12 months and the account can be closed if not maintained even after two years.
Atal Pension Yojana is an initiative to secure the financial future of senior citizens in India and provide an easy and efficient means for retirement savings.
