Atal Pension Yojana: If you want to ensure that your income never stops even after retirement, the Atal Pension Yojana may be the best option for you. This scheme is specifically designed for those working in the unorganised sector.

Atal Pension Yojana: If you want to ensure your income never stops even after retirement, the Atal Pension Yojana could be an excellent option for you. This scheme is specifically designed for those working in the unorganised sector, those who have no future income options. You can earn a pension of ₹5,000 by saving ₹7 a day.

The biggest advantage of this scheme is that you can start with a very small amount. For example, if a person joins this scheme at the age of 18, they will need to contribute just ₹210 per month, or about ₹7 a day. In return, after the age of 60, they will receive a monthly pension of ₹5,000. If someone joins the scheme at the age of 32, they will need to deposit ₹689.

What is the Atal Pension Yojana?

The Atal Pension Yojana was launched in 2015-16. This scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA). Its purpose is to provide financial security in old age to workers in the unorganised sector, small businesses, and working individuals. Under this scheme, a monthly pension of ₹1,000 to ₹5,000 is guaranteed by the government after the age of 60.

The government also assists.

The government also contributes to this scheme. The government contributes a maximum of ₹1,000 per year or 50% of your total deposit, whichever is lower. However, this benefit is only available to those who do not pay taxes and are not enrolled in any other social security scheme.

Who can apply?

You must be between 18 and 40 years old to join this scheme. Once you join, you must make regular monthly contributions until you reach the age of 60. After that, you will begin receiving a fixed pension.

Benefits of Joining Early

The special feature of this scheme is that the earlier you start investing, the lower your monthly contribution will be. If you start at the age of 18, you can earn a pension of ₹5,000 by paying just ₹210 per month. However, if you delay, the monthly amount increases. For example, Rs 689 will have to be deposited at the age of 32 and Rs 1,454 at the age of 40.