After retirement, many people worry about how they will manage their expenses. While working, they get a regular salary. But after retirement, income sources become less. That is why people look for a monthly pension to meet their daily needs.
To help with this, the central government started the Atal Pension Yojana. In this scheme, people can deposit a fixed amount every month. After retirement, they will get a pension between Rs 1,000 and Rs 5,000 every month.
What is Atal Pension Yojana
The Atal Pension Yojana (APY) was launched in 2015. The aim of this scheme is to support workers in the unorganized sector. These workers usually do not get any pension benefits after retirement.
Anyone between 18 and 40 years old can join. Once enrolled, you have to pay a fixed monthly contribution. The amount depends on your age and the pension plan you select.
Pension Benefits under APY
When you turn 60, you start receiving a pension. The pension amount can be Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000 per month. The choice depends on the plan you selected earlier.
If the subscriber dies, the spouse will continue to get the pension. If both are not alive, the nominee will get the collected amount. This makes the scheme secure for the family as well.
Who Can Apply for APY
This scheme is for people who are not part of any other pension plan. Anyone from the unorganized sector can apply. The age limit is between 18 and 40 years.
It is also important to have a savings bank account. Aadhar card and mobile number are needed for verification.
How to Apply for Atal Pension Yojana
Applying for APY is very simple. First, open a savings account if you don’t have one. Then visit your bank branch and fill out the APY form.
After that, submit your Aadhaar card and mobile number for verification. Once approved, your monthly contribution will be auto-deducted from your bank account through ECS.
You must select a pension slab. The contribution amount depends on your age and the pension you want. For example, if you are 20 years old and choose a Rs 1,000 pension, you will pay only Rs 42 every month. But if you choose Rs 5,000 pension, your monthly premium will be higher.
FAQs
What is the age limit for APY?
18 to 40 years.
When will I start getting a pension?
From age 60.
How much pension can I get?
From Rs 1,000 to Rs 5,000.
Can my spouse get the pension after my death?
Yes.
Do I need a bank account to join?
Yes.