Atal Pension Scheme: The biggest concern for private sector employees is how to manage household expenses after retirement. While they receive a monthly salary during their working years, expenses don’t decrease with age. Medical, housing, and other needs continue. In such a situation, a fixed monthly pension makes life much easier.
With this in mind, the central government launched the Atal Pension Yojana (APY). This scheme is especially for those who don’t receive any pension or financial support after leaving their job. It’s considered a reliable way to address future financial concerns with minimal investment.
The Atal Pension Yojana was launched in 2015. Its aim was to provide financial security and stability to private sector employees in their old age. Individuals aged 18 to 40 years can participate in this scheme. Members have to deposit a fixed amount every month based on their age and the chosen pension amount. At the age of 60, they receive a monthly pension ranging from Rs. 1000 to Rs. 5000.
This pension is for life. It makes managing expenses after retirement much easier. If the member dies, the pension benefits are transferred to the spouse. If both are deceased, the accumulated amount is given to the nominee. For those who are not currently part of any pension scheme, this is a good way to secure their future.
The eligibility criteria for applying to the Atal Pension Yojana are quite simple. First, you need a bank account. You have to fill out the scheme’s form at a bank branch. You will need your Aadhaar card and mobile number. After this, the contribution will be deducted from your bank account every month through ECS (Electronic Clearing Service). Your monthly premium is determined at the time of pension enrollment.
For example, if a person chooses a monthly pension of Rs. 1000 at the age of 20, they will have to deposit approximately Rs. 42 per month. The contribution amount for the pension is typically the highest at Rs. 5000. Joining the scheme at a younger age results in lower investment and higher returns. Therefore, this is a very good option for employees working in the private sector.
