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Invest Rs 210 per month to get Rs 5,000 monthly pension under Atal Pension Yojana

Atal Pension Yojana (APY) is a National Pension Scheme which was passed in 2015 by the then finance minister Mr. Arun Jaitley. APY is a social security pension scheme focusing on workers in the unorganized sector. APY is a periodic contribution-based pension plan which guarantees a minimum pension of Rs 1000, Rs 2000, Rs 3000, Rs4000, or Rs 5000/- per month to be given at age of 60 years. Therefore, the benefit of minimum pension would be guaranteed by the government. The pension will be determined based on the individual’s age and the contribution amount.

Investors who have invested in the Atat Pension Yojana will start receiving the benefits at the time of retirement at the age of 60 years, which means that investors will have to invest for a minimum of 40 years in the scheme.

Investors receive monthly pensions until their death in the Atal Pension Yojana. In case of the death of the investor, the spouse continues to receive pension till his or her death. In the event of the death of the investor and the spouse, the entire corpus is transferred into the account of the nominee.

How to get a Rs 5000 monthly pension by investing just Rs 210 per month? 


1. Must be an Indian citizen
2. Must be between 18-40 years of age
3. Must have a savings bank account

Other Details

• The scheme promises a contribution by Central Government of 50 % of the total prescribed contribution by a worker or Rs. 1000 per annum whichever is lower, to all eligible subscribers who joined between June-December 2015 for a period of 5 years i.e. 2015-2020.
• The subscribers should not be part of any other statutory social security schemes (like Employee’s provident fund), or should not be paying income taxes, in order to avail Government’s contribution.
• A subscriber can open only one APY account.

Withdrawal Procedure

1. At the age of 60 years pension would be available to the subscriber.
2. The contributor’s spouse can claim the pension upon the contributor’s death.
3. Upon the death of both the contributor and his/her spouse, the nominee will be given the accumulated amount.
4. The subscriber can opt to decrease or increase pension amount. However, the switching option shall be provided         once a year in April.
5. The exit before the age of 60 years would be granted only if the beneficiary dies or has a terminal disease.

Private sector employees or employees working with organizations that does not provide pension benefits can also apply for the scheme. The goal of the scheme is to provide security so that workers save money for their old age while they are working and guarantees returns post retirement.

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