There are times, when senior citizens in our country sometimes face difficulties in meeting their basic needs.
To tackle this, both government and private banks have introduced retirement schemes. One such scheme can potentially yield Rs 60,000 with a monthly investment of just Rs 210.
This scheme, known as the Atal Pension Yojana, was initiated by the central government in 2015. It targets the young, women, farmers, and the elderly.
Under this scheme, if you start saving money now, you’ll receive a pension at the age of 60 for the rest of your life.
Details of the Scheme
This scheme offers a monthly pension, which ranges from Rs 1000 to Rs 5,000. In order to receive this monthly pension of Rs,1000 at the time of your retirement, you need to spend only Rs 42.
This pension also covers unorganized sector workers who are Indian nationals.
Under this system, the pension ranging from Rs 1,000 to Rs 5,000 will be received when you reach the age of 60. Meaning an annual pension up to Rs 60,000.
Calculations of Atal Pension Yojana
Say if you invest Rs.42 at the age of 18, a monthly pension of Rs 1,000 will be received. In a similar manner, investment of Rs 84 will result in a monthly pension of Rs.2000 and with a commitment of Rs.210 would yield a monthly income up to Rs. 5,000.
But however, the monthly contribution is on the basis of your age. Which means, if you start investing at the age of 40, you would be paying Rs. 1,454 per month to acquire the pension of Rs.5,000. Thus, earlier the start, the lower the investment.
Benefits Offered
In this scheme, the subscriber will get minimum guarantee pension of Rs 1000 to Rs 5000 per month from the age of 60, depending on the installments which depends on your age when they join the scheme.
If the user starts to invest from the age of 30, but dies before reaching the age of 60, their pension will reach the spouse. In case, both of them die, their nominee will get the fund.
However, the applicant’s age must belong to the age group of 18-40. After 40, the applicants aren’t accepted. Second, they should have a bank account. And Register with your Aadhaar and phone number guarantees receipt of all account details.”