Subscribing to the Atal Pension Yojana (APY)? – You need to Know How much to invest in the scheme

Subscribing to the Atal Pension Yojana (APY)? – You need to Know How much to invest in the scheme

Atal Pension Yojana (APY) is a pension scheme focused on the unorganised sector. The pension scheme – Atal Pension Yojana – allows persons between 18 and 40 years of age to invest for up to 20 years to earn a fixed monthly pension of Rs. 1,000-Rs. 5,000 after attaining retirement – at age 60 years, according to regulator Pension Fund Regulatory and Development Authority (PFRDA)’s website – pfrda.org.in. Subscribing to the Atal pension scheme at an early age minimises the contribution required to reach the desired monthly pension, maximising the pension benefit, say wealth planners. (Also read: How to invest in Atal Pension Yojana)

A comparison of indicative contribution levels required by the investor to earn a fixed monthly pension of Rs. 1,000-Rs. 5,000 under Atal Pension Yojana:

Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs. 1,000 per month after attaining retirement, according to the National Securities Depository (NSDL)’s website – nsdl.co.in:

Fixed monthly pension of Rs. 1,000 vs contribution period under Atal Pension Yojana

AGE OF JOINING	YEARS OF CONTRIBUTION	INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES)	MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES)	INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES)
18	42	42	1,000	1.7 Lakh
20	40	50	1,000	1.7 Lakh
25	35	76	1,000	1.7 Lakh
30	30	116	1,000	1.7 Lakh
35	25	181	1,000	1.7 Lakh
40	20	291	1,000	1.7 Lakh
(Source: npscra.nsdl.co.in)

Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs. 2,000 per month after attaining retirement, according to the NSDL website:

Fixed monthly pension of Rs. 2,000 vs contribution period under Atal Pension Yojana

AGE OF JOINING	YEARS OF CONTRIBUTION	INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES)	MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES)	INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES)
18	42	84	2,000	3.4 lakh
20	40	100	2,000	3.4 lakh
25	35	151	2,000	3.4 lakh
30	30	231	2,000	3.4 lakh
35	25	362	2,000	3.4 lakh
40	20	582	2,000	3.4 lakh
(Source: npscra.nsdl.co.in)	Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs. 3,000 per month after attaining retirement, according to the NSDL website: Fixed monthly pension of Rs. 3,000 vs contribution period under Atal Pension Yojana AGE OF JOINING YEARS OF CONTRIBUTION INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES) MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES) INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES) 18 42 126 3,000 5.1 Lakh 20 40 150 3,000 5.1 Lakh 25 35 226 3,000 5.1 Lakh 30 30 347 3,000 5.1 Lakh 35 25 543 3,000 5.1 Lakh 40 20 873 3,000 5.1 Lakh (Source: npscra.nsdl.co.in) Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs. 4,000 per month after attaining retirement, according to the NSDL website: Fixed monthly pension of Rs. 4,000 vs contribution period under Atal Pension Yojana AGE OF JOINING YEARS OF CONTRIBUTION INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES) MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES) INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES) 18 42 168 4,000 6.8 Lakh 20 40 198 4,000 6.8 Lakh 25 35 301 4,000 6.8 Lakh 30 30 462 4,000 6.8 Lakh 35 25 722 4,000 6.8 Lakh 40 20 1164 4,000 6.8 Lakh (Source: npscra.nsdl.co.in) Here are details of the investment required in Atal Pension Yojana (APY) to reach a goal of Rs. 5,000 per month after attaining retirement, according to the NSDL website: Fixed monthly pension of Rs. 5,000 vs contribution period under Atal Pension Yojana AGE OF JOINING YEARS OF CONTRIBUTION INDICATIVE MONTHLY CONTRIBUTION (IN RUPEES) MONTHLY PENSION TO SUBSCRIBER AND SPOUSE (IN RUPEES) INDICATIVE RETURN OF CORPUS TO SUBSCRIBER’S NOMINEE (IN RUPEES) 18 42 210 5,000 8.5 Lakh 20 40 248 5,000 8.5 Lakh 25 35 376 5,000 8.5 Lakh 30 30 577 5,000 8.5 Lakh 35 25 902 5,000 8.5 Lakh 40 20 1,454 5,000 8.5 Lakh (Source: npscra.nsdl.co.in) 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. Source: ndtv