Government-run Atal Pension Yojana (APY), a pension scheme focused on the unorganised sector, offers a fixed, guaranteed minimum monthly pension to subscribers. The subscriber can opt for one of the five monthly pension options: Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000, according to regulator Pension Fund Regulatory and Development Authority (PFRDA)'s website - pfrda.org.in. Individuals between 18 and 40 years of age can set up an APY account, and contribute between Rs 42 and Rs 1,454 a month till the age of 60 to reach their pension goal, according to the PFRDA website.
Here's a comparison of the indicative contribution required by different age groups for the available monthly pension slabs under the Atal Pension scheme:
| Age of entry | Contribution years | Monthly pension | ||||
|---|---|---|---|---|---|---|
| Rs 1,000 | Rs 2,000 | Rs. 3,000 | Rs. 4,000 | Rs. 5,000 | ||
| 18 | 42 | 42 | 84 | 126 | 168 | 210 |
| 19 | 41 | 46 | 92 | 138 | 183 | 228 |
| 20 | 40 | 50 | 100 | 150 | 198 | 248 |
| 21 | 39 | 54 | 108 | 162 | 215 | 269 |
| 22 | 38 | 59 | 117 | 177 | 234 | 292 |
| 23 | 37 | 64 | 127 | 192 | 254 | 318 |
| 24 | 36 | 70 | 139 | 208 | 277 | 346 |
| 25 | 35 | 76 | 151 | 226 | 301 | 376 |
| 26 | 34 | 82 | 164 | 246 | 327 | 409 |
| 27 | 33 | 90 | 178 | 268 | 356 | 446 |
| 28 | 32 | 97 | 194 | 292 | 388 | 485 |
| 29 | 31 | 106 | 212 | 318 | 423 | 529 |
| 30 | 30 | 116 | 231 | 347 | 462 | 577 |
| 31 | 29 | 126 | 252 | 379 | 504 | 630 |
| 32 | 28 | 138 | 276 | 414 | 551 | 689 |
| 33 | 27 | 151 | 302 | 453 | 602 | 752 |
| 34 | 26 | 165 | 330 | 495 | 659 | 824 |
| 35 | 25 | 181 | 362 | 543 | 722 | 902 |
| 36 | 24 | 198 | 396 | 594 | 792 | 990 |
| 37 | 23 | 218 | 436 | 654 | 870 | 1,087 |
| 38 | 22 | 240 | 480 | 720 | 957 | 1,196 |
| 39 | 21 | 264 | 528 | 792 | 1,054 | 1,318 |
| 40 | 20 | 291 | 582 | 873 | 1,164 | 1,454 |
| (Source: nsdl.co.in) | ||||||
(Also read: Key things to know about new pension scheme for unorganised workers)
While the pension amounts are fixed in the Atal pension scheme, the amount of contribution required by a subscriber depends on the age of entry.
According to financial experts, subscription to the Atal Pension Yojana (APY) at an early age maximises the benefit of the scheme by minimising the investment required to reach the desired goal.
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.
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