Atal Pension Yojana: Prime Minister Narendra Modi turned 75 today, September 17. He has been the Prime Minister of the country since 2014. During his tenure, several schemes for the general public have been launched. One such scheme is the Atal Pension Yojana (APY). Under this scheme, beneficiaries receive a monthly pension of between ₹1,000 and ₹5,000 after they turn 60.
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If you want to plan for your retirement by ensuring a regular income, the Atal Pension Yojana (APY) could be a suitable option for you. This scheme can provide financial security during your old age. We are explaining the details of this scheme below…
Key points about Atal Pension Scheme
- Indian citizens between 18 and 40 years of age can avail this benefit.
- You can choose a monthly pension amount of ₹1000, ₹2000, ₹3000, ₹4000, or ₹5000.
- The pension will start once you turn 60.
- You can claim tax exemption on your contributions under Section 80CCD of the Income Tax Act.
- Taxpayers are not eligible for this scheme.
- A savings bank account, Aadhaar card, and an active mobile number are required to join the scheme.
Under the Atal Pension Yojana, you need to invest for 20 years to receive a monthly pension of between ₹1000 and ₹5000 after turning 60. Individuals between 18 and 40 years of age can invest in this scheme. Anyone who opts for this scheme must make contributions for a minimum of 20 years.
The investment amount depends on your desired pension. The amount you need to contribute each month depends on the pension you wish to receive after retirement. To receive a monthly pension of ₹1000 to ₹5000, a subscriber will need to contribute between ₹42 and ₹210 per month, assuming they join the scheme at age 18.
However, if a subscriber joins the scheme at age 40, they will need to contribute between ₹291 and ₹1454 per month. The higher the contribution, the higher the pension received after retirement.
See here how much pension you will receive based on your contributions to the Atal Pension Yojana.
If a 18-year-old person saves…
- Rs. 42 every month, they will receive a monthly pension of Rs. 1000 after turning 60.
- Rs. 84 every month, they will receive a monthly pension of Rs. 2000.
- Rs. 126 every month, they will receive a monthly pension of Rs. 3000.
- Rs. 168 every month, they will receive a monthly pension of Rs. 4000.
- Rs. 210 every month, they will receive a monthly pension of Rs. 5000.
If a 40-year-old person saves…
- Rs. 291 every month, they will receive a monthly pension of Rs. 1000 after turning 60.
- Rs. 582 every month, they will receive a monthly pension of Rs. 2000.
- Rs. 873 every month, they will receive a monthly pension of Rs. 3000.
- Rs. 1164 every month, they will receive a monthly pension of Rs. 4000.
- Rs. 1454 every month, they will receive a monthly pension of Rs. 5000.
Note: A separate contribution amount is also specified for individuals aged 19 to 39. You can check this information online or by visiting a bank branch.
You can make contributions according to your convenience. Under this scheme, investors can contribute monthly, quarterly, or semi-annually (every 6 months). The contribution will be automatically deducted from your account and credited to your pension account.
The spouse will receive the pension after the subscriber’s death. After the subscriber’s death, the spouse will receive the same pension amount. In case both the subscriber and the spouse pass away, the accumulated pension amount up to the age of 60 will be returned to the nominee.
If the subscriber dies before the age of 60, the spouse can continue contributing to the APY account. The spouse will be entitled to receive the same pension amount that the subscriber would have received. Alternatively, the spouse can withdraw the entire accumulated amount from the APY account.
Taxpayers are not eligible for this scheme. The Atal Pension Yojana is not available for taxpayers. This means that if you pay income tax, you will not be able to open an account under this scheme. This rule was implemented by the government from October 1, 2022.
You can avail the benefits of this scheme online.
- Log in to SBI’s net banking.
- Then, click on the e-Services link.
- In the new window that opens, click on the link for the Social Security Scheme.
- You will then see options for PMJJBY/PMSBY/APY. Click on APY (Atal Pension Yojana).
- Next, you will need to enter details such as your account number, name, and age.
- Then, select the desired monthly pension amount.
- Based on your age, the system will calculate the required monthly contribution.
Note: The process may vary slightly from one bank to another.
