Here is some good news as the government is considering a proposal to raise the pension limit under Atal Pension Yojana (APY) to up to Rs. 10,000 per month from the existing slab of up to Rs. 5,000, as reported by Press Trust of India. APY is a pension scheme focused on the unorganised sector workers, such as personal maids, drivers, gardeners etc.
This social security scheme was introduced as a replacement to previous government's Swavalamban Yojana NPS Lite, which wasn't well accepted by people. In May this year, there was news that the scheme has added over 1 crore subscribers since its launch in May 2015, the Pension Fund Regulatory and Development Authority.
You need to be an Indian citizen, have a valid bank account, and also should be between 18-40 years of age to be eligible for the Atal Pension Yojana.
What Should Be the Monthly Contribution?
The monthly contribution depends upon the fixed amount of monthly pension you want and the age you start your contributions. Pension starts at 60 years of age. Therefore, even if you join APY at 50 years of age, you need to pay a premium for a minimum of 10 years to avail the pension. APY promises a fixed monthly pension of Rs 1,000, 2,000, Rs 3,000, Rs 4,000 and Rs 5,000. Reportedly, there are three modes of payment-monthly, quarterly and half-yearly. In this scheme, you can decrease or increase the pension amount, during the accumulation phase, once a year.
SBI, ICICI Bank-Leading Banks are Offering This Facility
You can avail the APY facility through leading banks in the country like SBI, ICICI Bank, who are offering it through their net banking facility. This option is, however, not available with all the banks.
What Happens in Case of the Death of the Subscriber?
In case of the death of the subscriber, his/her spouse will be entitled to the pension amount till the end. On both the demise of the subscriber and the spouse, the nominee will be entitled to receive the pension amount.
According to PTI reports, the top ten states in APY mobilisation are Uttar Pradesh (1,401,631); Bihar (1,061,660); Tamil Nadu (814,917); Maharashtra (758,695); Karnataka (686,504); Andhra Pradesh (686,504); West Bengal (551,471); Madhya Pradesh (498,111); Rajasthan (497,962) and Gujarat (486,465).