A person of 30 years of age continues to pay Rs 577 per month (Rs 6,924 per annum) for 30 years. Once the subscriber turns 60, he will be entitled to a pension of Rs 5,000 per month (Rs 60,000 annually).
Taxpayers will not be able to invest in Atal Pension Scheme from October 1, 2022. The government is going to discontinue the Atal Pension Scheme for the taxpayer . Notification of this has been issued on 10th August. Atal Pension Scheme or APY is such a scheme in which one can get guaranteed pension after 60 years by depositing a nominal amount. In this scheme, there is a provision to give a minimum monthly pension of Rs 1,000 (Rs 12,000 annually) and maximum Rs 5,000 (60,000 annually) to the depositor. So, if you are a taxpayer and want to get a pension of up to Rs 5,000 after the age of 60, you can apply for Atal Pension Scheme before 30 September or 1 October. After that you will not get a chance.
For youths in the age group of 20-30 years, the pension of Rs 5,000 in APY may seem modest. But it has many features. The first thing is that it is a guaranteed pension which will definitely be deposited in your account every month in the form of a fixed amount. The second special thing is that it is completely different from the National Pension System i.e. NPS, in which there is a provision of two separate accounts. You cannot withdraw the entire amount at once and have to buy an annuity scheme. Another special thing, in the rest of the pension schemes, you have to deposit a lump sum or a large amount in sequence, then the pension fund is collected. This is not the case in Atal Pension because by depositing a few rupees here one can take guaranteed pension.
Advantage of APY
Whole life pension is given in Atal Pension Scheme. After the death of the subscriber, his wife (or husband) is given the same amount as pension. When the wife also passes away, the nominee is returned the entire amount which was deposited in the APY account. Let us know how you can take maximum advantage of this scheme.
Suppose, a person of 30 years of age continues to pay Rs 577 per month (Rs 6,924 per annum) for 30 years. Once the subscriber turns 60, he will be entitled to a pension of Rs 5,000 per month (Rs 60,000 annually). Let the person live till 90 years. Thus, he will get pension for 30 years.
How much pension
If you are close to 40 years then the maximum age to invest in APY is 40 years. This would mean that you can invest in this scheme till the age of 40 years and 364 days. Thus, if you are close to this age, you have to invest for at least 19 years. For example, a person who starts investing at the age of 40 has to invest APY for 20 years. For a pension of Rs 5,000, the monthly contribution amount will be Rs 1,454.
A subscriber opting for a monthly pension of Rs 5,000 at the age of 18 will have to deposit Rs 210 every month for 42 years. Similarly, a subscriber opting for a monthly pension of Rs 5,000 at the age of 24 will have to make a monthly contribution of Rs 346 for 36 years.
