Rs 5,000 per month. If that is the pension you desire after turning 60, you can take two routes - either invest Rs 210 per month for 42 years or invest Rs 1,454 per month for 20 years. Pension scheme APY or Atal Pension Yojana is a government-run scheme mainly focused on the unorganised sector employees. One can start investing in this pension scheme between 18 and 40 years of age to earn a fixed minimum monthly pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000, depending on contribution and the age of subscriber. Starting at an early age minimises the contribution required to reach the desired minimum monthly pension under APY, thus maximising the pension benefit, say experts.
Most financial advisors recommend starting early in an investment program. But first, here are the three key things to know about pension scheme APY or Atal Pension Scheme: (Also read: National Pension System, PPF or Senior Citizen Savings Scheme (SCSS) - Which one to pick?)
How to invest in APY (Atal Pension Yojana)
Benefits of Atal Pension scheme (Atal Pension Yojana)Who can invest in APY or Atal Pension YojanaFor more details on APY, read this
| Fixed minimum monthly pension of Rs 5,000 under APY | |||
| Starting age (in years) | Monthly contribution (Rs) | Total contibution (years) | Total investment (Rs) |
| 18 | 210 | 42 | 1,05,840 |
| 25 | 376 | 35 | 1,57,920 |
| 30 | 577 | 30 | 2,07,720 |
| 35 | 902 | 25 | 2,70,600 |
| 40 | 1454 | 20 | 3,48,960 |
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