The government is considering doubling the pension limit of its flagship retirement pension plan Atal Pension Yojana (APY) to Rs 10,000 per month after an apparent late realisation that Rs 5,000 per month may not be enough in the twilight years.
“There has been a lot of feedback from the market asking for higher pension amounts because many feel that Rs 5,000 at the age of 60 years after say, 20-30 years from now, will not be sufficient,” said Madnesh Kumar Mishra, joint secretary, Department of Financial Services.
The proposal, however, will be sent to the finance ministry for its approval. Pension regulator, the Pension Fund Regulatory and Development Authority (PFRDA), has also sent two more proposals to the ministry on auto-enrolment for APY and raising the age bar to enter the scheme to 50 years from current 40 years.
Launched in 2015, the number of subscribers of APY, which is meant for around 85% of country's workforce engaged in the unorganised sector, has reached 1.02 crore now.
Under this scheme, the guaranteed minimum pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000 per month is given at the age of 60 years depending on the contributions made by the subscribers.
The spouse of the subscriber is also eligible for a pension while the nominee is eligible for the accumulated pension wealth.
The scheme is offered by private and public sector banks, RRBs and post offices. Close to Rs 4,000 crore contribution has been collected under the APY scheme till now. The PFRDA hopes to add another 70 lakh subscribers to APY in the current financial year.