What is Atal Pension Yojana (APY)?
The Atal Pension Yojana is a government-backed pension scheme aimed at unorganized sector workers. It ensures a fixed monthly pension after retirement (age 60) based on the contribution made and age at entry.
Formula Used
Monthly Contribution = Based on Pension Amount and Entry Age Total Corpus = Contribution * Number of Payments + Government Contribution (if applicable)
Benefits
- Guaranteed monthly pension from age 60
- Low contribution amounts starting from Rs. 42/month
- Government co-contribution for eligible subscribers (for early enrollees)
- Tax benefit under Section 80CCD(1)
Frequently Asked Questions (FAQs)
Who can join the Atal Pension Yojana?
Anyone aged 18-40 years with a bank account can enroll in APY.
What are the pension options under APY?
Pension slabs include Rs. 1000, 2000, 3000, 4000, or 5000 per month, starting at age 60.
Are there any tax benefits?
Yes. Contributions are deductible under Section 80CCD(1).
Is the contribution fixed throughout?
Yes, based on your chosen pension amount and age of joining.