Atal Pension Yojana (APY): As we grow older, our sources of income deplete, but our monthly expenses may not. We need some regular income sources to cover our daily expenses. One of the best ways to accomplish this is to invest in a retirement scheme where you can get guaranteed returns in the form of a regular monthly pension.
 
One of the central government schemes for retirement planning is Atal Pension Yojana, which provides a guaranteed monthly pension. This scheme is for workers in the unorganised sector.
 
Now, before knowing how you can get a fixed monthly pension from Atal Pension Yojana (APY), get knowledge about some of its features.

What is Atal Pension Yojana?

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The pension system, named after former Prime Minister Atal Bihari Vajpayee, provides social security to workers in the unorganised sector.
 
Features:
1- APY is available for all bank account holders.
2- Any Indian citizen aged between 18-40 can get the benefit of APY.
3- Once subscribed, the investor will receive a fixed minimum pension between Rs 1,000 per month and Rs 5000 per month from the age of 60 years, depending on the investment.
4- Under APY, the subscriber would get a monthly pension, followed by his spouse, and after their deaths, the subscriber's pension corpus, as accrued at the age of 60, would be returned to the subscriber's nominee.
5- The benefits of a minimum pension are guaranteed by the Indian government.
 
Eligibility

  • Any citizen between the ages of 18 and 40  can apply for APY.
  • For APY, Aadhaar will be the primary KYC document. Aadhar and mobile numbers are recommended to be obtained from subscribers for the ease of operation of the scheme. If not available at the time of registration, Aadhar details may also be submitted at some later stage.

Charges for default
Banks are expected to collect an extra fee for delayed payments, which will range from Rs 1 per month to Rs 10 per month, as stated below:
 
• Rs 1 per month for contributions up to Rs 100 per month.
• Rs 2 per month for contributions up to Rs 101 to 500 per month.
• Rs 5 per month for contributions between Rs 501 and Rs 1000 per month.
• Rs 10 per month for contributions beyond Rs 1,001 per month.
 
If the payment contribution discontinues, the account will be frozen after six months, and after 12 months, the subscriber's account will be deactivated, while after 24 months, the account will be closed.

Therefore, there should be enough funds in the bank account for auto debit of the contribution amount.

How to exit APY?

A subscriber can exit the scheme after 60 years of age. However, one can also exit before 60 years of age in exceptional cases, like in the event of the death of the beneficiary or a terminal disease.
 
In the event of a subscriber's death, the spouse will get the pension. If both the subscriber and spouse pass away, the pension will be given to the nominee.
 
Now, let's see how to get a pension under Atal Pension Yojana.
If a person starts contributing to APY at the age of 25, here's how they will get a monthly pension as per their contribution till the age of 60.
 
Atal Pension Yojana (APY): How to get a Rs 1K monthly pension in APY?
To receive a Rs 1,000 pension, your monthly payment should be Rs 76, Rs 226 quarterly, or Rs 449 semi-annually.
 
Atal Pension Yojana (APY): How to get a Rs 2K monthly pension in APY?
To receive a Rs 2,000 pension, your monthly payment should be Rs 151, Rs 450 quarterly, or Rs 891 semi-annually.
 
Atal Pension Yojana (APY): How to get a Rs 3K monthly pension in APY?
To receive a Rs 3,000 pension, your monthly payment should be Rs 226, Rs 674 quarterly, or Rs 1,334 semi-annually.
 
Atal Pension Yojana (APY): How to get a Rs 4K monthly pension in APY?
To receive a Rs 4,000 pension, your monthly payment should be Rs 301, Rs 897 quarterly, or Rs 1,776 semi-annually.
 
Atal Pension Yojana (APY): How to get a Rs 5K monthly pension in APY?
To receive a Rs 5,000 pension, your monthly payment should be Rs 376, Rs 1,121 quarterly, or Rs 2,219 semi-annually.