Atal Pension Yojana: Forget retirement worries! Get a guaranteed monthly pension of ₹5,000 with a modest investment of just ₹376 with the government's Atal Pension Yojana (APY). This scheme for young people aged 18 to 40 ensures financial security in old age and a security cover of ₹8.5 lakh for their families.

Atal Pension Yojana: The Central Government's Atal Pension Yojana (APY) has emerged as a major support for securing the retirement planning of those working in the unorganized sector. This scheme, run by the Public Financial Institutions (PFRDA), guarantees a fixed monthly income to beneficiaries after the age of 60.

A special opportunity for those aged 18 to 40

The government has set the age limit for joining the Atal Pension Yojana at 18 to 40 years. The main condition for this scheme is regular contributions for at least 20 years. The investment amount is determined by the applicant's age. For example, if a person joins the scheme at the age of 25, they will need to deposit only ₹376 per month, and in return, they will receive a monthly pension of ₹5,000 after the age of 60.

Benefits Even After the Pensioner's Death

According to the scheme rules, after the age of 60, the pensioner receives a fixed amount for life. If the pensioner dies, their spouse will continue to receive the same pension. In the event of both pensioners' deaths, the government returns a lump sum corpus of approximately ₹8.5 lakh to the nominee. In the event of the member's death before the age of 60, the spouse has the option to continue the account or withdraw the funds.

Tax Exemptions and Important Precautions

Investing in APY provides tax benefits under Section 80CCD(1) of the Income Tax Act. However, experts say that relying solely on this pension could be risky given future inflation. It should be considered as part of a retirement portfolio, alongside other investments such as mutual funds or SIPs.