Should I Opt for Atal Pension Scheme? | Value Research The Atal Pension Yojana is meant for workers in the unorganized sector who don't have a formal pension
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Should I Opt for Atal Pension Scheme?

The Atal Pension Yojana is meant for workers in the unorganized sector who don't have a formal pension

I am thinking of opting for Atal Pension Scheme launched in June 2015 by the government. I am a taxpayer (age 30) and planning to go with ₹5,000 monthly pension scheme. Can you please tell me whether it is the right choice for me?
- Parmeshthee Jain

Atal Pension Yojana (APY) is meant for individuals in the unorganised sector, who do not have a formal pension. It is useful for people who have no other means to save for retirement. If you fall in this category, go ahead with your investment. If you have access to a bank account and mutual funds, consider investing regularly in a balanced mutual fund scheme.

Just look at the math. You would be paying ₹577 every month for the next 30 years for a monthly pension of ₹5,000 in Atal Pension Scheme. If you invest the same amount in a balanced scheme and it grows at 12 per cent per year, you would have a corpus of ₹20.37 lakh at the end of 30 years. Even at a meagre 5% annual return thereon will earn you around ₹1 lakh a year on the amount.


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