Under the Atal Pension Yojana (APY), you could receive a pension of ₹10,000 instead of ₹5,000. The government may announce this change on February 1. Reports suggest that the maximum monthly pension under APY might be increased to ₹10,000. Currently, beneficiaries receive a maximum of ₹5,000 per month. Sources indicate that the proposal to increase the pension amount is in its final stages and may be announced in the upcoming budget.
Minimum Pension Amount May Also Increase!
Officials have hinted that the minimum pension amount might also be raised. The scheme is designed to provide financial support to the weaker sections of society after the age of 60.
What is Atal Pension Yojana?
Launched by Prime Minister Narendra Modi on May 9, 2015, the Atal Pension Yojana is a social security scheme aimed at providing financial security to senior citizens, especially the poor and those working in the unorganized sector. Named after former Prime Minister Atal Bihari Vajpayee, the scheme currently offers pensions ranging from ₹1,000 to ₹5,000 to its subscribers after the age of 60.As of October 2024, 7 crore people have enrolled in the APY.
Benefits for 7 Crore Subscribers!
In the financial year 2024-25, the total number of enrollments under the scheme reached 7 crores, with 56 lakh new subscribers joining during the period. The Pension Fund Regulatory and Development Authority (PFRDA) has played a key role in promoting this scheme.
Pension Benefits After 60 Years
Under the scheme, beneficiaries can receive monthly pensions of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 after turning 60, depending on their contribution amount.
For instance, if someone starts saving at the age of 18 for a ₹1,000 monthly pension, they need to contribute just ₹42 per month. For a maximum monthly pension of ₹5,000 starting at age 40, a subscriber needs to contribute ₹1,454 per month.
Key Features of the Plan
One of the scheme’s highlights is its “comprehensive security cover.” In the event of the beneficiary’s death, their spouse will continue to receive the pension. After the spouse, the nominee will receive the accumulated amount up to the age of 60.
Eligibility
Open to all Indian citizens aged 18 to 40.Applicants must have a bank account.Income taxpayers are not eligible for the scheme.The contribution amount varies depending on the desired pension amount.