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Retirement planning is the most important and crucial things of one’s life. To make retire life smooth one has to plan it from early days or from even from the first day of his/her professional journey. Money9 brings information of a unique product that will give a monthly pension of Rs 5,000 per month if you invest only Rs 7 every day.
Invest only Rs 7
We are talking about government guaranteed Atal Pension Yojona (APY). It was renamed in 2015. This is the flagship social security scheme of the government particularly to the workers in the unorganised sector. APY provides a minimum guaranteed pension ranging from Rs 1,000 to Rs 5,000 on attaining 60 years of age.
The amount of pension is guaranteed for lifetime to spouse on death of the subscriber.
If we consider an individual of 18 years of age who begins investing in APY, he/she has to pay only Rs 7 per day, i.e. Rs 210 per month for 42 years. It would entitle him/her to a guaranteed minimum pension of Rs 5,000 per month after 60 years of age.
On the other hand, if a person enters APY at the age of 30, then he/she has to pay Rs 19 per day or Rs 577 per month to get the minimum pension of Rs 5,000 per month.
For both the cases if the beneficiary dies then the nominee will get Rs 8.51 lakh.
For less pension, invest less
If the pension amount is less, such as Rs 1,000, Rs 2,000 or Rs 4,000, then the monthly amount would be much less.
An 18-year-old person has to invest only Rs 42 per month for a minimum pension of Rs 1,000, Rs 84 for pension of Rs 2,000 and Rs 168 for a pension of Rs 4,000 per month.
One can choose his monthly pension amount and the monthly contribution will be fixed accordingly.
Starting at 18 years up to the age of 39 years, one can invest in this scheme, however, the pension amount will be payable only after the investor attains 60 years of age.
Bottom line
The government has relaunched APY. People mainly from unorganised sector would be benefitted from this scheme, said Nirmal Das, general secretary, WB Small Savings Agents’ Association.
To apply for APY, one can visit any bank or post office. Almost all nationalised banks and post offices provide the service, he added.