Types of Savings and Investment
Atal Pension Yojana
Previously we have discussed the National Pension Scheme, which was only catering towards the organized sector of our economy like salaried individuals. But what about individuals like daily wage earners who belong from the unorganized sector of the economy. Therefore, the government of India launched the Atal Pension Yojana which is a pension scheme for workers in the unorganized sector. The minimum age of joining is 18 years and the maximum age is 40 years. One cannot exit this scheme before completing 60 years of age.
How to Start Atal Pension Yojana
A bank account and an Aadhaar Card is needed to enroll in this pension scheme.
Under the APY, subscribers receive a fixed pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 per month at the age of 60 years, depending on their contributions.
Tax is exempted on contributions and accumulation but chargeable on the maturity amount.
Risk associated with Atal Pension Yojana
There is no risk involved as this scheme is backed by the Government of India. However, the returns are not inflation protected.