Government Scheme: More people today are looking for secure schemes that can provide a steady source of income in the future, rather than simply leaving their savings in the bank. Especially after retirement, many people lack a stable source of income. Keeping this need in mind, the government has launched the Atal Pension Yojana (APY). This is a government scheme that allows you to receive a fixed monthly pension after the age of 60 by making small installments from a young age. If you join at the appropriate age, you can later receive a monthly pension of up to ₹5,000.

Who can benefit from the scheme?

To join the Atal Pension Yojana, you must be an Indian citizen. Anyone between the ages of 18 and 40 can join. A bank account is also required, as premiums are automatically deducted from this account every month. This scheme is specifically designed for those who want to secure their income after retirement. The younger you join this scheme, the less you have to deposit, and the higher your future pension.

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Who Cannot Apply?

If you are under 18 or over 40, you cannot join this scheme. Also, a major change has come into effect from October 2022. Now, anyone who pays income tax or has previously paid taxes cannot participate in the Atal Pension Yojana. This means that this scheme is specifically for low- and middle-income individuals who have limited options for retirement security.

How Much Pension Will You Receive?

Under this scheme, you can receive a pension ranging from ₹1,000 to ₹5,000 per month after the age of 60. This depends on the pension amount you choose and your age. For example, if a young person joins this scheme at the age of 18, they will only need to deposit approximately ₹210 per month to receive a monthly pension of ₹5,000. At the age of 30, the same pension requires a monthly contribution of approximately ₹577.

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How to Apply

To enroll in the scheme, you must visit your bank and fill out the Atal Pension Yojana form. You must also complete your KYC process by providing your Aadhaar and other required documents. After selecting your preferred pension plan, the bank will set up auto-debit from your account. The monthly installment is then automatically deducted, and you will receive a registration acknowledgement.