With this scheme, you get the option of getting a fixed pension ranging from Rs 1,000, up to Rs 5,000 after 60 years of age. The exact pension amount is determined based on your age and the contribution you make.
If you are looking for a monthly pension plan, choosing the right plan is important. The Atal Pension Yojana (APY) is aimed at the unorganized sector and is administered by the Pension Fund Regulatory and Development Authority (PFRDA). This pension plan was launched in 2015 and encourages people from the unorganized sector to voluntarily save for their retirement.
According to industry experts, you will get the maximum benefit of the scheme, if you opt for this scheme at an early age. Starting investing in this scheme at an early age will also help you minimize the investment required to reach your desired goal.
With this scheme, you get the option of getting a fixed pension ranging from Rs 1,000, up to Rs 5,000 after 60 years of age. The exact pension amount is determined based on your age and the contribution you make. Depending on the age you start contributing under this scheme and the pension slab you choose, your contributions will vary from Rs 42 to Rs 1,318 per month. For instance, if a person joins at 22 years and aims to get a monthly pension of Rs 1,000, he/she has to contribute Rs 59 per month. If the same depositor wishes to get Rs 5,000 as monthly pension, then a contribution of Rs 292 per month needs to be made, which is less than even Rs 10 a day. One can start to invest in this scheme at 18 years, and go up to the age of 39 years, however, the pension amount will be payable only after attaining 60 years of age.
In case of death of the depositor, the spouse or the nominee (in the case of death of both the depositor and his/her spouse) can claim the pension. Having said that, if the depositor dies before reaching 60 years of age, the spouse can choose to either continue the scheme for the balance period or claim the corpus by exiting the scheme. Hence, in the event of death or terminal disease of the depositor, there is the option of premature exit, according to PFRDA.
Application processes of the Atal Pension Yojana
To apply for APY, you can visit any bank to start an APY account. Almost all nationalized banks provide the option to opt for the scheme. The forms for the pension scheme are also available online, which can be download from the official website of banks. They are available in multiple languages such as English, Hindi, Tamil, Gujarati, Marathi, Odia, Kannada, Telugu, and Bengali. If you are downloading the form online, you need to fill up the application form and submit it to your respective bank. You will also be needed to give your valid mobile number, with a photocopy of your Aadhaar card. You will receive a confirmation message, once your application is approved.