In today’s busy life, we are often so engrossed in the worries of our present that we ignore future planning. Especially, when it comes to financial security after retirement, most people do not think seriously about it. But have you ever wondered how you will meet your expenses after the age of 60, when there will be no source of regular income? This is where the Atal Pension Yojana (APY) of the Government of India can prove to be a boon for you. This scheme is specially designed for those people who work in the unorganized sector and who do not have a fixed savings plan for retirement. Let us know about this scheme in detail and understand how it can be beneficial for you.

What is Atal Pension Yojana?

Atal Pension Yojana is a social security scheme of the Government of India that gives you a fixed pension every month after retirement. It was launched in 2015 and is named after former Prime Minister Atal Bihari Vajpayee. The main objective of this scheme is to provide financial support to those who work in the unorganized sector, such as daily wage laborers, small shopkeepers, rickshaw pullers, domestic workers, or people doing small jobs. This scheme ensures that after the age of 60, you get a fixed amount every month so that you can meet your basic expenses.

The biggest feature of this scheme is that it is very easy to start, and by investing a minimum amount in it, you can get a regular income in the future. Also, this scheme is fully supported by the government, which further increases its credibility.

Who can avail the benefit of this scheme?

There are some basic conditions to avail the benefits of Atal Pension Yojana, which are as follows:

• Age: To join this scheme, your age should be between 18 and 40 years. This means that if you are young now and want to start planning for your future, then this is a good opportunity for you.
• Indian Citizen: You must be a citizen of India.
• Savings Account: You must have a savings account in a bank or post office as the contribution and pension amount in this scheme is given through bank account only.
• No other pension scheme: If you are already a part of any government pension scheme (like NPS, EPF, or ESIC), you cannot join APY. This scheme is especially for those who do not have any other pension option

How much investment is required in this scheme?

In Atal Pension Yojana, you have to deposit a small amount every month, quarterly, or half-yearly basis. This amount depends on how much pension you want after the age of 60 and at what age you start this scheme. In this scheme, you can choose a monthly pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000.

For example:

• If you join this scheme at the age of 18 and choose a monthly pension of Rs 5,000, you will have to deposit around Rs 210 every month.
• At the same time, if you join at the age of 30 and choose the same pension of Rs 5,000, then you will have to deposit around Rs 577 every month.

The sooner you join this scheme, the less you will have to deposit every month, as your investment will grow over a long period of time. This amount can be deposited through auto-debit from your bank account, so you don’t have to worry about depositing every time.

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How do I get pension?

When you complete the age of 60 years, you start getting the chosen pension amount (Rs 1,000 to Rs 5,000) in your bank account every month. This amount will continue to be received for your lifetime. If you die, your spouse will continue to receive this pension. And if both of you die, the amount deposited by you (which is a fixed corpus) is returned to your nominee.

Benefits of Atal Pension Yojana

• Assurance of fixed income: By receiving a fixed amount every month after retirement, you can easily manage your expenses.
• Government backing: This scheme is run by the government, making it very low risk.
• Small investment, big benefit: By depositing a very small amount you can get a good pension in the future.
• Family protection: If something untoward happens to you, your family gets a pension or corpus amount.
• Easy process: There is no need for much paperwork to join this scheme. You just have to go to your bank or post office and fill a form.

How to start Atal Pension Yojana?

It is very easy to join Atal Pension Yojana. You can apply for this scheme by visiting your nearest bank or post office. For this, you have to follow these steps:

• Visit the bank: Visit your bank or post office where you have your savings account.
• Fill the form: There you will find a form of Atal Pension Yojana. Fill it carefully and choose your pension amount.
• Aadhaar and Mobile Number: You will be required to provide your Aadhaar card and mobile number as these are necessary for your identification and contact.
• Set up auto-debit: Start auto-debit facility from your account, so that your funds are automatically credited every month.

Some important things

• If you want to exit this scheme for any reason, you can do so, but there are some rules for this. You will get your deposit back, but some charges may be deducted from it.
• If you do not deposit your amount on time, you may have to pay some penalty. So try to keep your contribution regular.
• There is no special provision for tax exemption in this scheme, but it is a great option for securing your future.

Why Atal Pension Yojana is necessary

In today’s time, inflation is constantly increasing, and life after retirement can be difficult without any regular income. Especially for people working in the unorganized sector, who do not have any pension or other means of savings, this scheme is a great support for them. It not only gives you financial security, but also provides help to your family in the future.

Is this plan right for you?

If you are between 18 and 40 years old, work in the unorganized sector, and worry about your future, then Atal Pension Yojana is perfect for you. This scheme can give you a secure future with low investment. Even if you are currently employed and are a part of any other pension scheme, you can tell about this scheme to those members of your family who are eligible for