APY scheme: The APY or Atal Pension Yojana Monthly Premium Plan is a scheme chiefly designed for people working in the unorganised and rural sectors. The subscriber needs to pay a fixed monthly premium and they will receive a pension post retirement.
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.
The Atal Pension Yojana offers five different plans, which give a fixed pension amount ranging from Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 and Rs. 5000. The amount to be contributed varies with each plan. The fixed pension amount will generally be received by the subscriber and his spouse.
APY Chart
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 and ₹210 for ₹5000 monthly pension.
In the APY scheme the monthly pension keeps on increasing, so it is better to open APY account at an early age which means at the age of 18, s 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.
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In this way, if a person opens Atal Pension Yojana account at the age of 18 then he or she can fetch Rs. monthly pension on its rs.210 monthly savings.
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Investors receive monthly pensions until their death in the Atal Pension Yojana. In case of the death of the investor, the spouse continues to receive pension till his or her death. In the event of the death of the investor and the spouse, the entire corpus is transferred into the account of the nominee.
