Atal Pension Yojana (APY) is a government-run pension scheme focused on unorganised sector workers. Launched in 2015, Atal Pension Yojana or APY admits individuals in the age group of 18-40 years to contribute Rs. 42-1,454 a month till they attain the age of 60, and ensures a fixed minimum monthly
pension of Rs. 1,000-Rs. 5,000 for them subsequently, according to regulator Pension Fund Regulatory and Development Authority (PFRDA)'s website - pfrda.org.in. (Also read: Key things to know about new pension scheme for unorganised workers)
pension of Rs. 1,000-Rs. 5,000 for them subsequently, according to regulator Pension Fund Regulatory and Development Authority (PFRDA)'s website - pfrda.org.in. (Also read: Key things to know about new pension scheme for unorganised workers)
Here's how much one needs to contribute in the Atal pension scheme to earn the desired fixed income after retirement:
Atal Pension Yojana (APY) indicative contribution chart
| Age of entry | Years of contribution | Monthly pension of Rs.1,000 | Monthly pension of Rs.2,000 | Monthly pension of Rs.3,000 | Monthly pension of Rs.4,000 | Monthly pension of Rs.5,000 |
|---|---|---|---|---|---|---|
| 18 | 42 | 42 | 84 | 126 | 168 | 210 |
| 19 | 41 | 46 | 92 | 138 | 183 | 228 |
| 20 | 40 | 50 | 100 | 150 | 198 | 248 |
| 21 | 39 | 54 | 108 | 162 | 215 | 269 |
| 22 | 38 | 59 | 117 | 177 | 234 | 292 |
| 23 | 37 | 64 | 127 | 192 | 254 | 318 |
| 24 | 36 | 70 | 139 | 208 | 277 | 346 |
| 25 | 35 | 76 | 151 | 226 | 301 | 376 |
| 26 | 34 | 82 | 164 | 246 | 327 | 409 |
| 27 | 33 | 90 | 178 | 268 | 356 | 446 |
| 28 | 32 | 97 | 194 | 292 | 388 | 485 |
| 29 | 31 | 106 | 212 | 318 | 423 | 529 |
| 30 | 30 | 116 | 231 | 347 | 462 | 577 |
| 31 | 29 | 126 | 252 | 379 | 504 | 630 |
| 32 | 28 | 138 | 276 | 414 | 551 | 689 |
| 33 | 27 | 151 | 302 | 453 | 602 | 752 |
| 34 | 26 | 165 | 330 | 495 | 659 | 824 |
| 35 | 25 | 181 | 362 | 543 | 722 | 902 |
| 36 | 24 | 198 | 396 | 594 | 792 | 990 |
| 37 | 23 | 218 | 436 | 654 | 870 | 1,087 |
| 38 | 22 | 240 | 480 | 720 | 957 | 1,196 |
| 39 | 21 | 264 | 528 | 792 | 1,054 | 1,318 |
| 40 | 20 | 291 | 582 | 873 | 1,164 | 1,454 |
| (Source: nsdl.co.in) | ||||||
Under the APY pension scheme, subscribers can earn a fixed pension of Rs. 1,000 per month, Rs. 2,000 per month, Rs. 3,000 per month, Rs. 4,000 per month or Rs. 5,000 per month after retirement. While the pension amounts are fixed in the Atal pension scheme, the amount of contribution required by a subscriber depends on the age of entry.
Subscription to the Atal Pension Yojana (APY) at an early age maximises the benefit of the scheme by minimising the investment required to reach the desired goal, say wealth planners.
Minimum investment required
One can invest in the Atal pension scheme through three modes of payment: monthly, quarterly and half-yearly. This means that the pension scheme requires the investor to make a minimum of two contributions every year. For instance, an investor subscribing for the Atal scheme at the age of 18 years is required to pay Rs. 42 per month to reach a pension goal of Rs. 1,000 per month.
