Atal Pension Yojana (APY) is a pension scheme focused on unorganised sector workers. Launched in 2015, Atal Pension Yojana or APY admits individuals in the age group of 18-40 years to contribute Rs 42-1,454 a month till they attain the age of 60, according to regulator Pension Fund Regulatory and Development Authority (PFRDA)'s website - pfrda.org.in. Government-run Atal Pension Yojana ensures a fixed minimum monthly pension of Rs 1,000-Rs 5,000 for the subscriber subsequently, according to the regulator. (Also read: Key things to know about new pension scheme for unorganised workers | How much money you need to invest in Atal Pension Yojana to reach your goal)
Here's how much one needs to contribute in the APY pension scheme (Atal Pension Yojana) to earn the desired fixed income after retirement:
Atal Pension Yojana (APY) indicative contribution chart
|Age of entry||Years of contribution||Monthly pension of Rs 1,000||Monthly pension of Rs 2,000||Monthly pension of Rs. 3,000||Monthly pension of Rs. 4,000||Monthly pension of Rs. 5,000|
Under the Atal Pension Yojana, subscribers can earn a fixed pension of Rs 1,000 per month, Rs 2,000 per month, Rs 3,000 per month, Rs 4,000 per month or Rs 5,000 per month after retirement. While the pension amounts are fixed in the Atal pension scheme, the amount of contribution required by a subscriber depends on the age of entry.
Subscription to the Atal Pension Yojana (APY) at an early age maximises the benefit of the scheme by minimising the investment required to reach the desired goal, say wealth planners.
Minimum investment required
One can invest in the Atal pension scheme through three modes of payment: monthly, quarterly and half-yearly. This means that the pension scheme requires the investor to make a minimum of two contributions every year. For instance, an investor subscribing for the Atal scheme at the age of 18 years is required to pay Rs 42 per month to reach a pension goal of Rs. 1,000 per month.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.