In May 2015, Narendra Modi government launched Atal Pension Yojana. This scheme started for the unorganized sector of India and it is meant to provide social security. Under Atal Pension scheme, the subscribers get guaranteed pension benefits. It fulfills the commitment of guaranteed pension benefits to subscribers and their spouses by providing suitable gap funding. As per official statement on July 18, it has 1.08 crore subscribers and collected more than ₹ 4500 crore in contribution till now. Know more.
A person between the age of 18-40 years can invest in the scheme. Under the scheme, the subscribers earn a fixed minimum monthly return ranging from Rs 1000 to Rs 5000 depending on the contribution and age of depositor at the time of investment. The minimum period of contribution under Atal Pension Yojana is 20 years. To avail this scheme, one should have a savings account in bank or post office.
Talking about the modes of contributions, he can contribute monthly or quarterly or half-yearly. In this scheme, the monthly contribution varies from Rs. 42 to Rs. 210. For quarterly and half-yearly the deposition amount will vary. This scheme comes with an auto withdrawal facility. Hence, the contribution amount is debited automatically from the subscriber’s account. In fact, the contributions under the pension scheme can enjoy the tax benefits.
Increase the value of pension under APY
At a conference organised by pension regulator PFRDA, Madnesh Kumar Mishra, Department of Financial Services Joint Secretary said that there is a need to increase the value of pension under APY. Apart from increasing the value of pension, the other change demanded is increasing the age bar for the scheme so that more people can invest and take benefit of the same.