Atal Pension Yojana: the government transfers 5,000 rupees to the account every month; here’s how to take advantage of the benefits | News
Atal Pension Yojana allows investors to save little each month for their retirement, as it guarantees a monthly payment of Rs 5,000 to the beneficiary once he reaches 60 years of age.
New Delhi: Atal Pension Yojana (APY) is one of several state-run savings schemes that allow investors to save for their old age. The scheme allows investors to save little each month for retirement as it guarantees a monthly payout of Rs 5,000 to the beneficiary once he reaches 60 years of age.
The social security system is particularly focused on workers in the unorganized sector. Here is everything you need to know about the Atal pension plan:
Eligibility for the Atal Pension Plan
The central government has simplified the eligibility requirements for Atal Pension Yojana, with the aim of encouraging more investors to secure their retirement. Here are the three basic eligibility criteria for investing in Atal Pension Scheme:
– Only Indian citizens can invest in Atal Pension Yojana.
– Anyone between the ages of 18 and 39 can invest in the program.
– You must have a bank account with full KYC standards. Maintaining a minimum balance in the account will be the responsibility of the investor.
Atal Pension Yojana Premium
The premiums under Atal Pension Yojana depend on the age of the investor. For example, an 18-year-old investor will have to pay a premium of only Rs 210 per month to receive Rs 5,000 on a monthly basis after reaching 60 years of age.
On the other hand, an investor entering the scheme at the age of 39 will have to invest Rs 1318 per month for the remaining 21 years to receive a monthly pension of Rs 5000 under the scheme.
Pension options Atal Pension Yojana
Besides the monthly pension of Rs 5000, investors can choose other pension options starting from Rs 1000 per month, Rs 2000 per month, Rs 3000 per month and Rs 4000 per month.
Atal Pension Yojana Advantages
In case of misfortune, the investor nominee receives the monetary benefits under the scheme. The amount of the pre-determined corpus will be provided to the nominated candidate under the APY program.
Atal Pension Yojana Tax benefits
Atal Pension Yojana provides tax benefits under Section 80C of the Income Tax Act. Premiums paid under the scheme are eligible for a deduction of Rs. 50,000 under Section 80CCD(1B).