₹210 monthly savings can help you fetch ₹5000 monthly pension
APY scheme: Atal Pension Yojana (APY) is a guaranteed pension scheme backed by Government of India (GoI) administered by PFRDA (Pension Fund Regulatory Development Authority). The pension scheme is in news for adding more than 28 lakh new APY accounts in FY22. Overall, enrolments under APY has crossed 3.30 crore as on 25th August 2021, PFRDA claimed in its latest communication while sharing the record addition of APY subscribers in FY2021-22. As per the APY rules, an individual aged from 18 to 40 years can open APY account continue saving till 60 years of age to become eligible for monthly pension.
Under APY scheme, a subscriber is given choice to choose fixed monthly pension amount from ₹1000, ₹2000, ₹3000, ₹4000 ₹5000. One’s monthly contribution will depend upon the monthly pension chosen by the APY account holder. To open an APY account, one needs to visit nearest bank with ID proof, address proof age proof to fill the form for registration under the APY scheme.
As per Atal Pension Yojana chart, if a person is 18 years of age, then its monthly contribution will be ₹42 for ₹1000 monthly pension, ₹84 for ₹2000 monthly pension, ₹126 for ₹3000 monthly pension, ₹168 for ₹4000 monthly pension ₹210 for ₹5000 monthly pension.
This monthly pension keeps on increasing if the account holder is late in opening APY account. Means, it’s better to open APY account at the age of 18 as it gives maximum 42 years for contribution leading to least monthly contribution. APY account holder will have to pay more monthly contribution if its age is more than 18 years. As per the APY chart, an individual who is 30 year old, its monthly contribution for ₹1000 pension is ₹116. This monthly contribution will shot up to ₹577, if the APY account holder chooses ₹5000 monthly pension.
So, if a person opens APY account at the age of 18, he or she can fetch ₹5000 monthly pension on its ₹210 monthly savings.
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