Get minimum Guaranteed Pension of Rs. 1000 to Rs. 5000 though this Scheme

The Atal Pension Yojana (APY) ensures a worry-free retirement with benefits of financial security along with guaranteed pension. Its a pension scheme for citizens of India is focused on the unorganized sector workers.

Under the APY, guaranteed minimum pension of Rs. 1,000 or 2,000 or 3,000 or 4,000 or 5,000 per month will be given at the age of 60 years depending on the contributions by the subscribers.

Any Citizen of India can join APY scheme. The following are the eligibility criteria:

• The age of the subscriber should be between 18-40 years.
• He/ She should have a savings bank account/ post office savings bank account.

When registering, the potential candidate can give the bank their mobile number and Aadhaar to enable them to receive information on their APY account on a regular basis. Aadhaar is not mandatory for enrollment, though.

Need for Pension

A Pension provides people with a monthly income when they are no longer earning.

• Decreased income earning potential with age.
• The rise of nuclear family-migration of earning member.
• Rise in cost of living.
• Increased longevity.
• Assured monthly income ensures dignified life in old age.

Benefits of APY

In the event that the actual realized returns on pension contributions are less than the assumed returns for minimum guaranteed pension over the contribution period, the government will cover the shortfall in order to ensure the benefit of minimum pension under Atal Pension Yojana.

On the other hand, subscribers will receive greater plan benefits if the actual returns on their pension contributions over the course of the contribution term exceed the expected returns for the minimum guaranteed pension. This excess will be credited to their account.

Currently, a National Pension System (NPS) subscriber is qualified to get a tax benefit for their contribution—up to a certain amount—as well as for the investment returns associated with their contributions. Furthermore, only the subscribers’ pension income is deemed to be part of their regular income and is subject to taxation at the relevant marginal rate that applies to them, with the purchase price of the annuity upon their departure from NPS being exempt from taxation as well. APY subscribers are subject to the same tax treatment.