Pension provides important financial support during retirement and helps cover expenses in old age. By making small contributions to social security schemes like the government’s Atal Pension Yojana (APY), you can receive a steady income after retirement. Under the Atal Pension Yojana (APY), a pensioner can get up to INR 5,000 per month. Throughout this article, we will share all the details about Atal Pension Yojana (APY) and the simple steps to get a monthly pension of INR 5,000.

Who Can Avail Atal Pension Yojana?

Any citizen between the ages of 18 and 40 years can subscribe to APY. The individual must have a KYC-compliant savings bank account or a post office savings bank account. Since October 2022, income taxpayers are no longer eligible for the Atal Pension Yojana. This means that if you are paying or have paid income tax, you cannot join the scheme.

Contribution and Pension

Under the Atal Pension Yojana, subscribers can receive a guaranteed monthly pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000 from the age of 60. The pension amount depends on the contributions made and the age at which the scheme is joined.

The central government also contributes 50% of the subscriber’s contribution or Rs 1,000 (whichever is lower) for five years. Note that this government co-contribution is not available to income taxpayers or those covered under any statutory social security scheme.

Subscribers can make contributions monthly, quarterly, or half-yearly to this scheme.

If you join APY at the age of 18, you will need to contribute Rs 42 every month to receive a guaranteed pension of Rs 1,000, and Rs 210 every month to receive a pension of Rs 5,000. Alternatively, you can contribute Rs 626 quarterly or Rs 1,239 half-yearly to receive Rs 5,000 per month after turning 60. In this case, the total pension amount paid to the nominee would be Rs 8.5 lakh.

If you join the scheme at the age of 39, you will need to contribute Rs 1,318 monthly, Rs 3,928 quarterly, or Rs 7,778 half-yearly to receive Rs 5,000 per month.

Other Features

  • The pension is paid to the subscriber and continues for the spouse after their death.
  • After the death of both the subscriber and the spouse, the accumulated pension amount is given to the nominee.
  • If the subscriber dies before reaching 60, the spouse can continue contributing to the same APY account.
  • Subscribers can exit the scheme early, but only their contributions and the actual interest earned (after deducting account maintenance charges) will be refunded.