Are You 40 years old and wanna earn a guaranteed pension of Rs 5,000 per month? If yes, then you must be looking for some investment avenue that can guarantee you the pension amount every month. One such scheme is the Atal Pension Yojana (APY). Here’s how you can get a guaranteed pension of up to Rs 5,000 per month with minimum investment:
What is Atal Pension Yojana?
Announced in the Budget 2015-16, the APY is a central government scheme for income security in the old age and is focused on all citizens in the unorganised sector. The government is making efforts on encouraging and enabling people to save for their retirement. To address the longevity risks among the workers in the unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement.
The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System (NPS) architecture.
Under the APY, there is guaranteed minimum monthly pension for the subscribers ranging between Rs 1,000 and Rs 5,000 per month. The benefit of the minimum pension would be guaranteed by the Government of India.
The Centre contributes 50 per cent of the subscriber’s contribution or Rs 1,000 per annum, whichever is lower. Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.
APY is applicable to all citizens of India aged between 18 and 40 years.
How To Get Rs 5,000 Pension?
First of all, the early you start investing under the scheme, the lesser monthly amount you need to contribute. Anyone who is joining at the age of 18 will have to contribute just Rs 210 per month to get a guaranteed monthly pension of Rs 5,000.
Those planning at the age of 40 years to start investing and get a pension of Rs 5,000 can do so by investing Rs 1,454 per month till the age of 60 years. This will ensure you a minimum monthly pension of Rs 5,000. If you can’t invest Rs 1,454 per month, then the scheme also has other options for you.
At the age of 40 years, on the investment of Rs 291 per month, you can get Rs 1,000 per month pension; on the contribution of Rs 582, you can get Rs 2,000 monthly pension. If you want to earn a pension of Rs 3,000, then you will have to invest Rs 873 per month till the age of 60 years. A monthly contribution of Rs 1,164 can fetch you Rs 4,000 per month pension.
Exit From the Scheme
On attaining the age of 60 years: The exit from APY is permitted at the age with 100 per cent annuitisation of pension wealth. On exit, pension would be available to the subscriber.
In case of death of the subscriber due to any cause: In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
Exit before the age of 60 years: Exit before 60 years of age is not permitted. However, it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.
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