Retire smart: How Rs 7 daily can get you Rs 5,000 pension through Atal Pension Yojana

The central government is implementing various schemes for the welfare of the public. In that way, by saving just Rs.7 per day from the age of 18 in this scheme of the central government, you can get a monthly pension of Rs.5000 after retirement. Yes. By investing in the Atal Pension Yojana (APY) account, you can get a pension after retirement.

If you save Rs.7 per day, you will get Rs.210 at the end of the month. You only need to contribute Rs.210 from the age of 18 for a monthly pension of Rs.5000 when you retire at the age of 60.

Similarly, if you open an APY account at the age of 25, you need to contribute Rs.376 for a monthly pension of Rs.5000 under this scheme. The monthly contribution required to receive Rs.5000 after retirement under this scheme increases with age. From the age of 30, the monthly contribution required for a pension of Rs.5000 will be Rs.577 and from the age of 35 it will be Rs.902. 

For a monthly pension of Rs.1000 after retirement, you only need to contribute Rs.42/month from the age of 18 and Rs.116/month from the age of 30.

What is APY?

APY is a scheme run by the central government, which ensures income security with a fixed monthly payment of up to Rs.5000 after retirement. This scheme was introduced in 2015-16 and aims to encourage workers in the unorganized sector to voluntarily save money for their retirement.

APY is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the NPS structure. This scheme guarantees a minimum monthly pension to the subscribers. The monthly pension ranges from Rs.1,000 to Rs.5,000 per month. The final pension amount will vary depending on the amount and duration of the investment made by the subscriber. Any Indian citizen between the ages of 18 and 40 can join this scheme.