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Atal Pension Scheme Investment: For senior citizens concerned about having a steady income in their later years, the Atal Pension Yojana provides some relief. Indeed, the objective of the centrally-sponsored scheme is to provide a pension of 1,000 to 5,000 rupees to elderly low-income citizens after they turn 60. Anyone aged between 18 to 40 years is eligible to take this scheme and pay a fixed amount monthly. It is a co-funded scheme where the government also contributes to the total amount after some years.
Your income is sustained even beyond pensionable age
If you desire to sustain some income post-retirement, then Atal Pension Yojana is an excellent choice. Under the scheme, after age 60, there is a pension of 1,000 to 5,000 rupees a month, but the amount a pensioner gets depends on their contribution to the fund. Let’s say that a subscriber dies, this pension is paid to the spouse. Furthermore, if both perish, the nominee gets the entire amount.
Simple ways to get Pension of 5000 rupees per month
By participating in the Atal Pension Yojana (APY), you can receive a pension of up to 5000 rupees a month after retirement with an investment of 7 rupees a day, or 210 per month. Let us illustrate this with a simple example. If you begin saving at age 18, and continue this for 7 rupees a day until age 60, you can receive a pension of 5000 rupees a month. For a 1000 rupee pension, an investment of 42 rupees a month will suffice. Under this scheme, to get the optimum returns, you would have to invest for at least 20 years. If you begin saving at 40, you will start earning a pension by 60.
What is the eligibility for the scheme?
Certain criteria have been established for joining at Atal Pension Yojana. For the scheme, the age criteria is, a person should be at minimum 18 years, and a maximum 40, years of age. Additionally, an active bank account should be maintained by the person with Aadhar and KYC linked and for the person’s aadhar details and KYC to be eligible, the person has to be an Indian citizen.
What are the steps involved for application to the Atal Pension Yojana?
It only takes a few simple steps to apply for the Atal Pension Yojana, but make sure to follow each step exactly as outlined. The appointment's first step is to visit a local branch of the bank and to retrieve an Atal Pension Yojana application form, as well as fill it out. Provide the necessary details such as your name, age, aadhaar, bank account information, and other relevant details and attach the required documents. After form submission and verification of details by bank officials, the chosen pension amount will also be asked to be chosen, from a range of ₹ 1000 to ₹ 5000. After these steps, the account will be linked to the chosen pension scheme. (This is an informational article. Please consult an expert for professional investment advice.)
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