Want To Invest In Atal Pension Scheme? Eligibility, Contribution And Other Key Details

APY or Atal Pension Yojana is a pension scheme focused on the unorganised sector. Launched in 2015, the Ayal Pension scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA). The scheme encourages workers from the unorganised sector to save voluntarily for their retirement, according to the pension regulator’s website, pfrda.org.in. Subscription to APY at an early age maximises the benefit of the scheme by minimising the investment required to reach the desired goal, say financial experts.

Here are five things to know about Atal Pension Yojana (APY):


1. Age: The minimum age to start an investment in Atal Pension Yojana is 18 years and the maximum age is 40 years. The pension is payable at the age of 60 years.

2. Amount: One can invest in the pension scheme to earn a fixed amount of Rs. 1,000 per month, Rs. 2,000 per month, Rs. 3,000 per month, Rs. 4,000 per month or Rs. 5,000 per month.

3. Contribution: The pension scheme’s contributions can vary from Rs. 42 to Rs. 1,454 per month, depending on the age of entry and the pension slab chosen by an individual. For example, a person joining at 18 years of age has to contribute Rs. 42 per month to get a monthly pension of Rs. 1,000, Rs. 126 per month to get a monthly pension of Rs. 3,000.

4. Eligibility and exit: Opening an Atal Pension Yojana account requires the applicant to hold a savings account with a bank. The subscribers of the pension scheme are allowed a premature exit before the age of 60 years “only in exceptional circumstances, i.e., in the event of the death/ terminal disease”, according to pension regulator PFRDA.

5. Other benefits: The subscriber is guaranteed a minimum monthly pension between Rs. 1,000 and Rs. 5,000 and to the spouse after death of the subscriber, according to PFRDA.



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