FEASIBILITY ANALYSIS OF ATAL PENSION YOJANA.

NPS introduced by Government of India is concerned with protection of unorganized sector workers and to promote voluntarily save for their retirement. Monthly contribution depends on the age at the time of entering into scheme. The objective of the study is feasibility of subscription of Atal Pension Yojana as a retirement planning instruments. Methodology includes secondary data using future value of contribution per month, present value of contribution and present value of pension benefit receivable. For the purpose of study starting age of 18, 25, 30, 35 and 40 has been considered with monthly pension post 60 years of Rs. 1000, Rs. 2000 and Rs.5000. The study compares the present value of pension benefit to present value of contribution to analyze whether subscriber gets benefits out of the scheme.Based on the study it can conclude that as a part of Financial Inclusion, the Government of India?s Atal Pension Yojana a defined benefit scheme introduced to protect the unorganized sector workers will not serve the purpose of income security and retirement benefit. As per the analysis the scheme is not giving positive present value to subscriber at 8%, 7.5% interest factor and will provide incentive at 6.5%. To cater the need of unorganized sector workforce government has to co-contribute more amount in the scheme.