Latest news with #AtalPensionYojana
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Business Standard
20 hours ago
- Business
- Business Standard
Young Indians want to retire early; few are financially ready: Survey
Young Indian professionals wish to retire early but most of them do not save enough to make that dream a reality, according to a survey by professional services firm Grant Thornton Bharat. The survey was conducted by Grant Thornton Bharat gathered responses primarily from private sector employees aged 25–54. It focused on retirement planning, pension expectations, and financial awareness using structured questionnaires. Early retirement, but limited savings As many as 43 per cent of respondents aged 25 or younger wish to retire between 45 and 55 years, much earlier than the conventional retirement age of 60. Around 74 per cent of all survey participants said they contribute 1 per cent to 15 per cent of their monthly salary as retirement savings. 'There is a clear mismatch between expected retirement age and financial contribution patterns,' said the report, adding that high aspirations aren't matched by prudent investment behaviour. High pension expectations, low confidence While over half the respondents said they expected a monthly pension of more than Rs 1 lakh, only 11 per cent were confident that their investments will be sufficient. 'This stark disparity highlights a significant preparedness gap,' the survey noted. Dependence on traditional products Most respondents continue to rely heavily on traditional pension schemes. Nearly 83 per cent said their retirement planning is based on the Employees' Provident Fund, gratuity, or the National Pension System (NPS). Private annuity plans, which can offer stable income post-retirement, remain underutilised; 76 per cent of respondents have not invested in them. Half of the respondents admitted to having no knowledge about the Atal Pension Yojana, a government scheme aimed at securing retirement income for informal workers. Meanwhile, only 17 per cent said they understood their pension calculations 'very well.' ALSO READ | What needs to change The findings underscore the need for financial education and reforms in pension planning. 'Financial institutions should consider introducing more guaranteed income products, such as annuities, to cater to the demand for stability,' said the report. It called for reforms in NPS and improving awareness about pension schemes and retirement planning.
Economic Times
2 days ago
- Business
- Economic Times
Many Indians may not be saving enough for retirement
The overall contribution to retirement products is relatively low for most individuals in India, suggesting that many people may not be saving enough for retirement, Grant Thornton Bharat said in its report based on the analysis of a pension survey conducted between August 2024 and September 2024. The survey analysis pointed out notable dissatisfaction, especially with national pension system (NPS) returns. 'While employees' pension fund (EPF) and NPS are popular retirement products, there is notable dissatisfaction, especially with NPS returns, indicating the need for better-designed, more attractive retirement solutions. 'The NPS scheme may need reforms to address concerns about returns and customer satisfaction,' it suggested. The report further said that there is a significant gap between the desired pension and the perceived adequacy of current retirement savings. 'Financial institutions should consider introducing more guaranteed income products, such as annuities, to cater to the demand for stability' it said. 'Respondents prioritise long-term financial security over high returns, and there is strong interest in government-backed pension plans, although younger people are more inclined toward high-risk, high-reward strategies,' it to the report, many people are unaware of specific government schemes (like Atal Pension Yojana) and how their pension amounts are calculated. 'This suggests a need for greater financial literacy and transparency around pension planning,' it report aims to inform policymakers, individuals, employers, and financial institutions about the prevailing attitudes and gaps in the pension landscape by presenting a mix of qualitative insights and quantitative data supported by graphical representations.'The insights from the report serve as a foundation for developing better policies and enhancing financial literacy among employees to ensure a secure and stable retirement,' the report said.
Time of India
2 days ago
- Business
- Time of India
Many Indians may not be saving enough for retirement
The overall contribution to retirement products is relatively low for most individuals in India, suggesting that many people may not be saving enough for retirement, Grant Thornton Bharat said in its report based on the analysis of a pension survey conducted between August 2024 and September 2024. The survey analysis pointed out notable dissatisfaction, especially with national pension system (NPS) returns. 'While employees' pension fund (EPF) and NPS are popular retirement products, there is notable dissatisfaction, especially with NPS returns, indicating the need for better-designed, more attractive retirement solutions. 'The NPS scheme may need reforms to address concerns about returns and customer satisfaction,' it suggested. The report further said that there is a significant gap between the desired pension and the perceived adequacy of current retirement savings . 'Financial institutions should consider introducing more guaranteed income products, such as annuities, to cater to the demand for stability' it said. Live Events 'Respondents prioritise long-term financial security over high returns, and there is strong interest in government-backed pension plans, although younger people are more inclined toward high-risk, high-reward strategies,' it added. According to the report, many people are unaware of specific government schemes (like Atal Pension Yojana ) and how their pension amounts are calculated. 'This suggests a need for greater financial literacy and transparency around pension planning,' it said. The report aims to inform policymakers, individuals, employers, and financial institutions about the prevailing attitudes and gaps in the pension landscape by presenting a mix of qualitative insights and quantitative data supported by graphical representations. 'The insights from the report serve as a foundation for developing better policies and enhancing financial literacy among employees to ensure a secure and stable retirement,' the report said.
Time of India
21-05-2025
- Business
- Time of India
Started with lower Atal Pension Yojana bracket? How to increase your pension from 2,000 to 5,000
Did you sign up for the Atal Pension Yojana with a smaller goal in mind, for instance Rs 2,000, but aim for more now? No worries, you are not stuck with it and can opt for the maximum of Rs 5,000. The Atal Pension Yojana is government's flagship pension scheme that aims to provide the country's unorganised workforce with a safety net by guaranteeing them with a fixed monthly pension of up to Rs 5,000 when they turn 60 years old. The scheme is open to all citizens from 18 to 40 years of age with a strong focus on informal sector workers who usually lack the access to more organized retirement benefits. The scheme launched with an aim of financial inclusion where workers can choose to contribute monthly, quarterly or even half yearly, and the amount is determined based on the pension target and the subscriber's age at the joining time. The pension bands available under the scheme are Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 and Rs 5,000 per month. Naturally, the earlier one joins, the lower the contribution required, thanks to the power of long-term savings. Now comes the question, what if someone opted for a lower pension bracket initially but wants to maximise it now? One can easily switch to a larger pension bracket as this scheme gives subscribers the flexibility to revise their target. According to the pension fund regulatory and development authority ( PFRDA ), a subscriber is allowed to increase or decrease their pension amount once every financial year during the accumulation phase or before turning 60. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch Bitcoin và Ethereum - Không cần ví! IC Markets BẮT ĐẦU NGAY Undo This means someone who started with a Rs 2,000 pension can indeed switch to Rs 5,000, provided they're still within the contribution window and adjust their payments accordingly, according to ET. How to know about the status of the scheme? APY members receive SMS alerts on their registered mobile number and can also access real-time updates via the APY mobile app to monitor their contributions and account status. Additionally, they also receive a physical statement once a year. What will happen if the savings account does not have enough funds for the contribution on the due date? In case of insufficient funds in the linked savings account, the contribution is marked as a default. The subscriber is then required to make the missed payment in the following month along with overdue interest. If contributions continue to be missed, the account won't close, but maintenance charges will keep getting deducted until the balance is exhausted. However, subscribers can revive their accounts anytime by clearing their dues. How is the money contributed invested in APY? Contributions made under the Atal Pension Yojana are invested according to guidelines set by the pension fund regulatory and development authority (PFRDA). These funds are managed by authorised pension fund managers such as SBI Pension Fund Pvt. Ltd, LIC Pension Fund Ltd, and UTI Retirement Solutions Ltd. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
20-05-2025
- Business
- Time of India
Can you change your monthly pension contribution from Rs. 2000 to Rs. 5000 in Atal Pension Yojana?
Understanding details of Atal Pension Yojana (APY) Live Events Can you increase your pension amount from Rs 2,000 to Rs 5,000? Important FAQs on Atal Pension Yojana The Atal Pension Yojana (APY) is a government-backed pension scheme launched by the government to provide financial security to citizens, especially those in the unorganised sector, the poor, and the underprivileged. It guarantees a minimum monthly pension ranging from Rs 1,000 to Rs 5,000, starting at the age of 60 years, depending on the subscriber's contributions. But what if you initially opted for a monthly contribution of Rs 2,000 pension and now want to upgrade to Rs 5,000? Is that possible?APY is a voluntary pension scheme open to all Indian citizens, particularly targeting workers in the unorganised sector who often lack access to formal retirement benefits . Under this scheme, subscribers contribute a fixed amount monthly, quarterly, or half-yearly, based on their chosen pension amount and their age at the time of joining. The monthly pension contribution options are:Rs 1,000 per month, Rs 2,000 per month, Rs 3,000 per month, Rs 4,000 per month and Rs 5,000 per monthThe amount you contribute depends on your age and the pension amount you earlier you join (ideally between 18 and 40 years of age), the lower your contributions will be, as the scheme works on the principle of long-term you can change your pension amount under APY. The scheme allows subscribers to increase or decrease their pension amount once per financial year during the accumulation phase (i.e., the period before you turn 60 and start receiving the pension). This flexibility ensures that subscribers can adjust their retirement goals based on their financial periodical information regarding the activation of PRAN, balance in the account, contribution credits etc. are provided to APY subscribers by SMS alerts on the registered mobile number or the same can also be accessed through APY Mobile app launched by CRA. The subscriber will also be receiving physical statement of transactions once in a financial year at their registered case of inadequate balance in the saving account of the subscriber till the last date of the month / last date of the first month in a quarter / last day of the first month in a half year, as the case may be, it will be treated as a default and contribution will have to be paid in the subsequent month along with overdue interest for delayed contributions. More than one monthly / quarterly / half yearly contribution can be recovered subject to the availability of the APY account never gets closed due to non-payment of contributions by the subscriber. Further, the subscriber can regularize his/ her account at any point of time by paying contributions for the overdue period along with the overdue interest. However, the deductions would continue to be made in the subscriber's APY account for account maintenance charges and other related charges on a periodic basis till it becomes contributions under APY are invested as per the investment guidelines prescribed by PFRDA for APY. The contributions thus collected are invested and the funds are managed by the Pension Funds namely SBI Pension Fund Pvt. Ltd, LIC Pension Fund Ltd and UTI Retirement Solution Ltd.
