Atal Pension Yojana Update: Under the Atal Pension Yojana, beneficiaries receive a monthly pension ranging from ₹1,000 to ₹5,000 after reaching the age of 60. The pension amount is predetermined and depends on the individual’s contributions during their working life. Anyone between the ages of 18 and 40 can join this scheme. Once an account is opened, regular investments are required for at least 20 years. The younger you are when you join the scheme, the lower your monthly contribution will be.
Monthly Contribution Determined by Pension Amount
The investment amount in the Atal Pension Yojana depends on the desired pension amount after retirement. If a person joins the scheme at the age of 18, they will have to contribute ₹42 per month for a ₹1,000 pension, while for a ₹5,000 pension, they will have to contribute ₹210 per month. Similarly, a person joining at the age of 40 will have to contribute ₹291 per month for a ₹1,000 pension and ₹1,454 per month for a ₹5,000 pension. The monthly installment increases with age.
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Conditions for those aged 19 to 39
Separate contribution amounts have also been fixed for people in the age group of 19 to 39 years. Complete information can be obtained through bank branches or online platforms. The calculation of pension and contribution is predetermined for each age group.
Convenient Installment Payment Options
Under the scheme, investors can deposit installments monthly, quarterly, or semi-annually, as per their convenience. The contribution amount is automatically debited directly from the bank account, reducing the chances of missed payments.
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What happens after the subscriber’s death?
If the person enrolled in the scheme dies, their spouse continues to receive the same pension that the original subscriber was entitled to. If both the subscriber and their spouse pass away, the entire accumulated amount up to the age of 60 is returned to the nominee. In case of death before the age of 60, the spouse can choose to continue the contributions or withdraw the entire amount in a lump sum.
Taxpayers are not eligible for the scheme
The government implemented a rule from October 1, 2022, stating that individuals who pay income tax cannot open an account under the Atal Pension Yojana. This scheme is specifically designed for low-income groups and people in the unorganized sector.