While organizing your finances, you need to have to go for the proper investment choices. This is correct whilst picking a month-to-month pension program also. For instance, the Atal Pension Yojana (APY) is aimed at the unorganized sector and is administered by the Pension Fund Regulatory and Development Authority (PFRDA). This pension program encourages people today from the unorganized sector to voluntarily save for their retirement.
Experts say one can get the maximum advantage of the scheme if one opts for this scheme at an early age. After reaching 60 years of age, this scheme comes with the choice of finding a fixed pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000.
What does the APY scheme supply?
An investor gets the choice of finding a fixed pension ranging from Rs 1,000, to up to Rs 5,000 following 60 years of age. The precise pension quantity, having said that, can only be determined based on one’s age and the contribution one tends to make.
For instance, based on the age one begins contributing beneath this scheme and the pension slab he/she chooses, the contributions may possibly differ from Rs 42 to Rs 1,318 per month. If a 22-year-old person aim to get a month-to-month pension of Rs 1,000, he/she wants to contribute Rs 59 per month. To get a month-to-month pension of Rs 5,000, the identical depositor will have to contribute Rs 292 per month, much less than even Rs 10 a day.
Starting at 18 years up to the age of 39 years, one can invest in this scheme, having said that, the pension quantity will be payable only following the investor attains 60 years of age.
The spouse or the nominee can claim the pension, in case of death of the depositor. However, if the depositor dies prior to reaching 60 years of age, the scheme can be either continued for the balance period or exited, based on the spouse. According to PFRDA, there is the choice of premature exit, in the occasion of death or terminal illness of the depositor.
To apply for the Atal Pension scheme, you can go to any bank, nearly all nationalized banks provide the choice to opt for the scheme. The types for the pension scheme are also obtainable on the internet, which can be accessed from the official site of banks.