A pension is the only financial support for the elderly who cannot work. Especially if you have worked in the unorganized sector throughout your age. Those who were formally employed either in the private sector or in the public sector are eligible for the pension given by the employer. However, **if you are employed in the unorganized sector then there is no provision for pension.** 

In India, 40% of the population works in the unorganized sector. But unfortunately, after many years of tedious hard work, this class is not paid anything when they retire. Due to a lack of education and financial literacy, these people can't even adopt the habit of saving and hence they are mostly left to their fate. 

The **Indian Government** therefore launched a scheme called the [Atal Pension Yojna](https://www.india.gov.in/spotlight/atal-pension-yojana) to support old age people with a fixed income if they belonged to the unorganized sector. 

The pension scheme's **main objective is to provide a fixed monthly pension to the elderly people who served in the unorganized sector.** Here we have listed the step-by-step methods that you should take to enroll for APY.

## How to enroll in the APY scheme? 

You can enroll in the [Atal Pension Yojna APY](https://www.india.gov.in/spotlight/atal-pension-yojana) very easily because it is simple and hassle-free. If you follow the given steps then you will be able to enroll for the Atal Pension Yojna APY. 

**1. Visit the nearest bank branch:-** All the nationalized banks provide the option for Atal Pension Yojana. Take the APY form.

**2. Once you receive the form from the Bank** fill out the form with personal bank account details.

**3. Select the amount** you would like to receive as your pension and the contribution frequency. 

**4. Make sure that you provide consent for auto debit.** This ensures that every month the amount of contribution will be automatically debited from your bank account. 

**5. After completing all the above steps** make sure that the amount of contribution is always maintained in the bank account. 

## What is the monthly contribution of Atal Pension Yojna? 

The **Atal Pension Yojna (APY)** is a government-backed pension Yojana. Its main object is to provide financial security
to individuals who are in their old age. 

The monthly contribution amount varies in this scheme based on the age of the subscriber. It also depends on the time of enrollment and the desired amount. Here's a comprehensive breakdown. 

## What is the Age of enrollment in Atal Pension Yojna? 

The **Atal Pension Yojna (APY)** is specially designed for those in the unorganized sector.

- If the subscriber joins between 18 to 40, the contribution will vary from the chosen amount. 
- If the subscriber joins after the age of 40, you will have to make higher contributions to meet the requirements. 

## What is the amount of pension that I will receive? 

The amount of pension differs between a fixed amount namely 1000,2000, 3000, 4000, 5000. The pension amount can be chosen at the desired time of enrollment. 

**Following is the list of the contributions that are required for the different amounts of income :**

**1. 1000 -** a monthly contribution of rupees 42 at the age of 18 and 181 at the age of 35 is required 

**2. 2000 -** a monthly contribution is rupees 84 at the age of 18 and 362 at the age of 35 

**3. 3000-** a monthly contribution is rupees 126 at the age of 18 and 543 at the age of 35 

**4. 4000-** a monthly contribution of rupees 168 at the age of 18 and 724 at the age of 35

**5. 5000-** a monthly contribution of rupees 210 at the age of 18 and 904 at the age of 35.

## Government contribution

**APY** has the government backup because the **government contributes 50% of the subscriber's contribution** or **Rs 1000 per year** whichever is less. This contribution is made by the government for 5 years if the subscriber is between 18 to 40. 

 ## What is the tenure of payment? 

Subscribers can make **monthly, quarterly, half-yearly, or yearly.** The amount of contribution must be maintained by the subscriber in their bank account.

## Funding of the Atal Pension Yojana

The funding in the scheme is mainly because of the contribution made by the subscriber and the co-contribution of the government. 

**1. Individual contribution-** This part of the funding is made by the subscribers who have enrolled in the scheme. It may be monthly, quarterly, half yearly, and yearly. 

**2. Government contribution-** This part of the funding is contributed by the government in the form of a yearly contribution of rupees 1000 or 50% of the contribution of the subscription.

**3. Interest Earnings -** This includes the interest earned by the funds that are **invested by the Pension Fund Regulatory and Development Authority.** This is done by the fund managers appointed by **APY.** Gradually these funds generated Growth These returns may vary depending on the performance of the underlying investments. 

Investing in APY encourages people in the unorganized sector to plan and save for their future. This serves as a means of fixed monthly pension security as well as a motive to save. To know more about the **Atal pension Yojana** connect to [Pension Box](https://pensionbox.in). We here help you plan and invest so that you have financial security in the future.

A pension is the only financial support for the elderly who cannot work. Especially if you have worked in the unorganized sector throughout your age. Those who were formally employed either in the private sector or in the public sector are eligible for the pension given by the employer. However, if you are employed in the unorganized sector then there is no provision for pension. 

Enrolling in the APY:- A step-by-step guide for a Secure Retirement

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