Keeping in mind the fact that 20-30 years from now, 60 year-olds would not be able to make do with Rs 5,000 per month, the government is considering a proposal to raise the pension limit under the Atal Pension Yojana (APY) to up to Rs 10,000 a month. Madnesh Kumar Mishra, Joint Secretary of Department of Financial Services (DFS) stressed on the need to increase the value of pension under APY during a conference organised by Pension Fund Regulatory and Development Authority (PFRDA)."We have seen the proposal (sent by PFRDA) of increasing the pension value to (up to) Rs 10,000 per month and it is under our active examination," Mishra said on the sidelines of the event, as mentioned on agency reports.
Hemant G Contractor, Chariman of PFRDA said that the proposal has been sent to the finance ministry with an aim to increase the subscriber base of APY. "Currently, we have five slabs of pension from Rs 1,000-5000 per month. There has been a lot of feedback from the market asking for higher pension amounts because many people feel that Rs 5,000 at the age of 60 years, 20-30 years from now, will not be sufficient," Contractor said.
Contractor further added that they have asked the government to raise the pension amount to up to Rs 10,000.
Additionally, PFRDA has sent two more proposals to the ministry - auto enrolment for APY and raising the maximum age bar to enter the scheme to up to 50 years. Currently, the age of entering APY is from 18-40 years but an increase in the same by another 10 years- making it from 18-50 years - will help in expanding the subscriber base, he added.
The subscriber base of APY is 1.02 crore. PFRDA added about 50 lakh new subscribers under the scheme in 2017-18 and hopes to add another 60-70 lakh in the ongoing financial year, Contractor said.