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Atal Pension Yojana: Must invest in this scheme before reaching the age of 40

Due to the impact of the corona virus epidemic and increasing awareness about financial security, people are turning to long-term investments. In the recent times, there has been a positive change in the thinking and thinking of people regarding retirement funds. For this Atal Pension Yojana (APY) has emerged as a great option. APY is a government sponsored social security scheme, which was launched in the year 2015. All bank account holders can take advantage of this scheme, which offers a minimum pension of Rs 1000 and a maximum of Rs 5000. Atal Pension Yojana offers you guaranteed pension after the age of 60 years, provided the monthly contribution is paid till the age of 60 years.

Guaranteed return

The reason for the popularity of Atal Pension Yojana is the promise of guaranteed returns after retirement. It promises lifelong pension to the subscriber, triple benefit of lifelong pension to the spouse after the death of the subscriber. Further, after the death of both of them, the entire amount is returned to the nominee (child or others).


In addition to the above three benefits, up to Rs 50,000 is eligible for tax deduction under section 80CCD (1B) of the Income Tax Act, which is in addition to the Rs 1.5 lakh allowed under section 80C.

Net profit

Contribution to this scheme depends on your age, pension amount and contribution period. For example, to get a monthly pension of 5 thousand rupees, a 39-year-old person will have to pay Rs 1318 every month till the age of 60 years. After contributing till 21, the consumer will get 5 thousand rupees a month for the rest of his life. After the death of the subscriber, the pension will be given to his/her spouse. After his death, a total amount of Rs 3,32,136 will be given to the nominee (child or others).

Overall, the Atal Pension Yojana (APY) provides a net return of around 6.08% over the entire term of the policy. For calculations, the average life expectancy age is assumed to be 68 for the male, and the estimated age of the wife is assumed to be 71 years.

Benefit of the scheme

  • All the people in the age group of 18 to 40 years can take advantage of this scheme. People above 40 are not eligible for the scheme.
  • The consumer gets whole life after 60 years in the form of pension starting from 1000 rupees a month to 2 thousand, 3 thousand, 4 thousand and 5 thousand rupees.
  • Government of India promises to give guaranteed pension
  • Aadhar card is the primary KYC for this scheme
  • Banks are required to collect an additional amount ranging from a minimum of Re 1 to Rs 10 per month for late payments.
  • In case of discontinuation of payment, the account gets frozen after 6 months. Inactive after 12 months and discontinued after 24 months.

Mode of payment

On completion of 60 years of age, eligible pension amount will be paid to the subscriber.

In case of death of subscriber: Pension will be given to the spouse of the deceased. And on the death of both (subscriber and spouse), the remaining amount of pension will be given to the nominee

Time of exit: According to the rules of the scheme, no person can exit the scheme before the age of 60 years. However, it is possible to exit the scheme in exceptional circumstances, such as in case of death or terminal illness of the beneficiary.

what should be done?

Atal Pension Yojana (APY) is a great scheme for the low earning class. Under this scheme, maximum pension is available only up to Rs 5000 per month. This may not seem like a sufficient amount for a section in view of rising inflation, but it does give a boost in retirement. Atal Pension Yojana (APY) can prove to be a great scheme to help you in retirement, which gives you and your spouse three benefits like life pension as well as balance amount to the nominee.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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