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For people working in the unorganized sector, such as laborers, drivers, street vendors, and domestic workers, planning for retirement becomes even more difficult.

Everyone is working hard today, but one question remains in everyone's mind: what will happen after retirement? How will expenses be managed when earning capacity decreases? Where will the money come from for medicines, housing, and daily needs? This concern is especially prevalent among people working in the unorganized sector, such as laborers, drivers, street vendors, and domestic workers. To address this concern, the Government of India has launched a reliable scheme called the Atal Pension Yojana (APY). This scheme guarantees a fixed monthly pension in old age, allowing you to live your life with dignity.

What is the Atal Pension Yojana?

The Atal Pension Yojana is a government pension scheme where, by investing small amounts, you can receive a monthly pension of Rs. 1,000 to Rs. 5,000 after the age of 60. The biggest advantage of this scheme is that the pension received is completely guaranteed, meaning there is no risk from market fluctuations.

Who can benefit from this scheme?

There are a few simple conditions to join the Atal Pension Yojana. You must be an Indian citizen, between 18 and 40 years of age, and have a bank account. This scheme is especially for those who do not fall under the income tax slab.

How much investment is required?

The investment amount in the Atal Pension Yojana depends on your age and the chosen pension amount. If you are 18 years old, you will need to invest approximately Rs. 42 per month for a Rs. 1,000 pension and approximately Rs. 210 per month for a Rs. 5,000 pension. If you are 40 years old, you will need to invest approximately ₹291 per month for a ₹1,000 pension and approximately ₹1,454 per month for a ₹5,000 pension. This means the earlier you join the scheme, the less you will have to pay each month. You can also contribute on a monthly or quarterly basis.

What are the benefits after age 60?

After reaching the age of 60, you will receive a fixed monthly pension. The pension amount will be between ₹1,000 and ₹5,000. This pension will be paid for life. If the pension holder dies, the pension benefit is transferred to the spouse. After the death of both spouses, the accumulated amount is returned to the nominee. Investing in the Atal Pension Yojana also entitles you to tax benefits under Section 80CCD of the Income Tax Act.

How to apply for the Atal Pension Yojana?

To apply for the Atal Pension Yojana, visit your nearest bank branch. Complete the KYC (Know Your Customer) process there. Fill out the Atal Pension Yojana form. Choose your desired pension amount. The premium will be automatically debited from your bank account. Your investment will then begin.