The Atal Pension Yojana is a scheme offered by the Central Government that provides a monthly pension of Rs. 5 thousand. This pension is intended to provide financial security to workers in the unorganized sector after they retire, as they do not have access to such pension facilities.
To join the scheme, unorganized sector workers between the ages of 18 and 40 must have a savings account in a post office or government bank linked to their Aadhaar number. Those covered under the National Pension Scheme or paying income tax are not eligible to join.
The premium for the Atal Pension Yojana varies according to the age of the subscriber and ranges from Rs. 1000 to Rs. 5 thousand per month. The premium must be paid until the age of 60, and the pension amount received after retirement depends on the monthly contribution.
For example, an 18 year old has to pay the premium for 42 years until the age of 60, which ranges from Rs. 42 to Rs. 210 per month. Meanwhile, a 40 year old has to pay the premium for 20 years, which ranges from Rs.291 to Rs.1454 per month.
Those who join the scheme can choose how much pension they want to receive per month, ranging from Rs. 1000 to Rs. 5000.
The Atal Pension Yojana account can be opened in government banks by filling out the application form and submitting the relevant documents. The account can also be opened online. If the subscriber dies before the age of 60, their spouse can continue the account and receive the pension after the subscriber’s death.
