Pre-retirement savings play a crucial role in your retirement financial planning. The Atal Pension Scheme is designed to assist you with financial support after retirement. The Atal Pension Scheme was introduced in the 2015-16 budget by the central government. It is designed for senior citizens and all citizens in the unorganized sector. The government has initiated such programs to encourage people to save for retirement.
The Government of India guarantees a minimum pension amount. The central government contributes 50% of the subscriber’s contribution to the scheme. All Indian citizens aged between 18 and 40 can participate in the Atal Pension Scheme.
Under the Atal Pension Scheme, an individual receives a guaranteed monthly pension ranging from ₹1,000 to ₹5,000.
All you need to do is save just ₹689 every month, but you must start this from your 32nd year. If you are around 18 years old, you can contribute ₹210 per month, which is like saving ₹7 a day.
The earlier you start investing in this scheme, the lower your monthly contribution will be. If a person joins the scheme at the age of 18, they can secure a guaranteed monthly pension of ₹5,000 by contributing ₹210 per month at the time of retirement. If you decide to retire at 40, you will need to invest ₹1,454 per month until you turn 60. In this case, your monthly pension will be ₹5,000. If you are unable to invest ₹1,454 per month, there are some other options available to you. If you are 32 years old, you can invest ₹689 per month to receive a guaranteed monthly pension of ₹5,000.
Visit https://www.npscra.nsdl.co.in/nsdl-forms.php to get the form to apply Atal Pension Scheme.
