Retirement planning is one of the important aspect in life. Start saving for retirement as early as possible either to retire early or to live a stress free in financial aspects after retirement. Yes, Rs. 10,000 after 30 years is not big amount, but each of these type of small amounts adds to considerable amount of money. So, never consider any amount as small. let me explain how it is possible
"ATAL PENSION SCHEME"
APS is retirement scheme for all Indian Citizens and it provides guaranteed Monthly Pensions after the age of 60 Years.
So, here is how to use APS to receive monthly pension Rs. 10,000 for a married couple.
Step 1 : Open a APS account for you in Bank
Step 2 : Choose a monthly pension amount Rs.5000 (This is the maximum amount possible as of now)
Step 3 : Choose contribution amount monthly, quarterly or half-yearly of your choice
Step 4 : Pay the contribution till 60 years of age (Auto debit from the bank account)
Step 5 : After the age of 60, you will receive guaranteed Rs, 5000 monthly till end of your life
Step 6 : After you, your spouse will receive Rs.5000 till end of his/her life.
Step 7 : After your Spouse, your Nominees or legal heirs will receive accumulated pension amount
Step 8 : Open APS account for your spouse as well and which gives Rs.5000 each and inturn Rs. 10,000 guaranteed monthly pension for your family.
Now, here is the example for contribution,
So, for example, if you are 30 and your spouse is 25, your monthly contribution will Rs. 577 + Rs. 376 = Rs. 953 per month till the age of 60.
For the ease of calculation lets round to Rs. 1000 per month and contribution for next 30 years
Amount Contributed :
=> 1000 x 12(Months) x 30 (Years) = Rs. 3,60,000 ( In span of 30 years )
In return,
=> We get Monthly Rs. 10,000 after age of 60, until survival of either one of them
=> After you and your spouse, your nominees will get Rs. 8,50,000 + Rs. 8,50,000 => Rs. 17,00,000
Note:
Is there any age limit to open this APS account?
Yes, APS can be opened between age of 18 till 40.
Income Tax Benefits?
Your contribution during given financial year will be eligible for tax deduction under 80CCD (1)
If you are interested further, google more about ATAL PENSION Scheme. Choose wisely and stick to the plan. It is important to create multiple source of monthly income after retirement. Every small amount counts for stable financial status. Always start early to get maximum benefits.
