Atal Pension Yojana: In this fast-paced life, everyone wonders what will happen after retirement. When their physical condition deteriorates, and their regular income dwindles, where will they find the money to pay for household expenses, medicines, and daily needs? This concern is especially pressing for those working in the unorganized sector, such as laborers, auto drivers, street vendors, and domestic workers.
The Atal Pension Yojana of the Government of India is proving to be a boon to alleviate this tension. Through this scheme, you can make a small saving today and ensure your old age is financially independent and dignified.
What is the Atal Pension Yojana
The Atal Pension Yojana is a flagship pension scheme of the Government of India that guarantees excellent and secure returns with a low investment. Under this scheme, you receive a monthly pension ranging from ₹1,000 to ₹5,000 after the age of 60. The biggest strength of this scheme is its guarantee, as stock market fluctuations do not affect your pension. This means the amount you receive is completely safe and fixed.
To join this scheme, applicants must be Indian citizens and between the ages of 18 and 40. They must also have a valid bank savings account. Note that this scheme is specifically designed for those who do not fall under the income tax slab.
Know how much premium you will have
The investment amount in the Atal Pension Yojana depends entirely on your age and the pension amount you choose. There’s a significant advantage to starting early. If you join this scheme at the age of 18 and want a maximum pension of ₹5,000, you’ll need to invest just ₹210 per month.
If you choose a pension of ₹1,000 at the same age, the premium amount is only ₹42 per month. However, if you start this scheme at the age of 40, you will have to deposit approximately ₹1,454 per month for a pension of ₹5,000. You can choose to deposit this investment amount monthly, quarterly, or half-yearly, depending on your convenience.
Benefits after 60
The Atal Pension Yojana not only provides you with a pension but also provides complete security to your family. Upon reaching the age of 60, you begin receiving a fixed monthly pension for life. If the pensioner unfortunately dies, the same pension amount is transferred to their spouse.
Another major advantage is that if both the husband and wife die, the entire amount deposited so far is returned to their nominee. Another major benefit of investing in this scheme is tax exemption. You also receive tax benefits on the amount invested under Section 80CCD of the Income Tax Act, further enhancing your savings.
Simple Application Process
Joining the Atal Pension Yojana has now become extremely easy and digital. You can fill out the application form by visiting your nearest bank or post office branch. There, you will need to complete the KYC process and link your Aadhaar and mobile number.
If you use net banking or mobile banking, you can register directly from the comfort of your home by going to the Social Security Schemes section. Once your application is approved, the premium amount will be automatically deducted from your bank account through auto-debit. You just need to ensure that you have sufficient balance in your account on the premium deduction date.