What is the ₹5000 pension scheme?

The ₹5000 pension scheme refers to the fixed monthly pension option under the Atal Pension Yojana (APY). Under this scheme, Indian citizens between 18 and 40 can join and contribute monthly to APY until age 60 to receive a guaranteed minimum monthly pension of ₹5000 after retirement. The earlier an individual joins, the lower the required contribution amount.

Subscribers have to make regular contributions to APY based on their age at entry and the pension amount they have chosen. On reaching 60 years of age, subscribers start receiving the guaranteed monthly pension amount directly into their bank account.

The ₹5000 pension scheme provides income security in old age. On the death of the subscriber, the spouse receives the pension or corpus. After the death of both, the nominee gets back the accumulated corpus. The scheme protects citizens from poverty in old age. You may use the Atal Pension Yojana Calculator online to understand how your pension is structured.