Published Date - 15 June 2018 02:58:41 Updated Date - 15 June 2018 02:59:50

Atal Pension Yojana – Modi Govt. Plans to Hike Pension Limit Upto Rs. 10,000/ Month

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. Candidates can apply online for Atal Pension Yojana at enps.nsdl.com. “Currently, we have five slabs of pension from Rs 1,000-5000 per month. There has been a lot of feedback from the market asking for higher pension amounts because many feel that Rs 5,000 at the age of 60 years, 20-30 years from now, will not be sufficient.

APY Scheme is a pension scheme of the central government which focuses on unorganized sector. APY scheme ensures pre-defined returns so any person starting at earlier age (min 18 years) would be required to make minimum contributions as mentioned in the APY contribution chart to achieve pension goals of Rs. 1,000 to Rs. 5,000 per month.

PFRDA has sent a proposal to the central govt. on raising pension limit, maximum age and auto enrollment. Now , govt. is actively examining their proposals to benefit the APY subscribers and to increase the base of the subscribers.

PFRDA Proposal –

PFRDA has sent a proposal to the central government which states the following things:-

  • An Increase in the Pension Limit from Rs. 5000 per month to Rs. 10,000 per month. Till date, the pension limit is confined to 5 slabs starting from 1000 to 5000.
  • Specific Procedure for Automatic Enrollment of Citizens in Apy Scheme Existing enrollment of subscribers in non-automatic.
  • Increasing the maximum age limit under APY to 50 years. The existing maximum age bar under APY is 40 years whereas the minimum age bar still remains same i.e 18 years.
 

In the past few weeks, APY has shown a significant growth as investors will also get Tax Benifits and the base of APY Subscribers is also increased.

 Feature Of Atal Pension Yojana 2018

The important features and highlights of Atal Pension Yojana 2018 are as follows:-

  • As per PFRDA Proposal, value of pension amount under Atal Pension Yojana needs to get raised.
  • Dept. of Financial services (DFS) is actively examining the proposal of PFRD to increase the pension values upto Rs. 10,000 per month.
  • Govt. is consistently receiving feedback from the market to raise the pension limit. Many people believes that Rs. 5,000 per month at the age of 60 years, after 20-30 years from now will not be sufficient.
  • Minimum age to start investing in set at 18 years. APY has pre-defined contribution slabs enabling the investors to reach their fixed pension goal of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs. 5,000. The earlier the person starts, lower is the monthly contribution to achieve pension goal.
  • Minimum investment, Maximum returns – Atal Pension Yojana includes 3 modes of payment – nmonthly, quarterly and half-yearly. A person needs to make minimum 2 contributions per year. For eg, any 18 years old subscriber needs to pay Rs. 42 per month or Rs. 248 per half year to get Rs. 1,000 per month on attaining the age of 60 years.
  • PFRDA proposals includes 2 more things as mentioned above – auto enrollment of APY subscribers and increasing the maximum age limit to 50 years to make an entry into the scheme.
  • This move to raise the maximum age limit will enable more subscribers to join APY and thus expands its subscribers base. The total number of subscribers counts to 1.02 crore till June 2018.

In the previous FY 2017-18, PFRDA has added 50 lakh new subscribers which is now expected to add another 60-70 lakh in the current FY 2018-19.

 


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