Atal Pension Yojana: If you’re looking to secure a steady income even after retirement, the Atal Pension Yojana might be a great choice for you. This initiative is tailored for individuals working in the unorganized sector who have limited options for future income. By saving just Rs 7 a day, you can earn a pension of Rs 5,000.
One of the key benefits of this scheme is that you can start with a very minimal investment. For instance, if someone enrolls in this program at the age of 18, they will only need to contribute Rs 210 each month, which breaks down to about Rs 7 daily. In exchange, once they turn 60, they will receive a monthly pension of Rs 5,000. Conversely, if an individual joins the scheme at 32, their monthly contribution will be Rs 689.
What is Atal Pension Yojana?
The Atal Pension Yojana (APY) was introduced in 2015-16 and is managed by the Pension Fund Regulatory and Development Authority (PFRDA). Its goal is to offer financial security in old age to workers in the unorganized sector, small business owners, and employed individuals. This scheme guarantees a monthly pension ranging from Rs 1,000 to Rs 5,000 after the age of 60, backed by a government assurance.
Additionally, the government plays a role in this scheme by contributing a maximum of Rs 1,000 annually or 50% of your total deposits, whichever is lower. However, this benefit is exclusively available to individuals who do not pay taxes and are not enrolled in any other social security program.
Who can apply?
To participate in this scheme, you must be aged between 18 and 40 years. After enrolling, you will need to make consistent monthly contributions until you reach 60 years of age. Following that, you will start receiving a fixed pension.