Atal Pension Yojana
One of the main features is the guarantee of a fixed monthly pension at age 60. The subscriber can choose a pension from INR 1,000, INR 2,000, INR 3,000, INR 4,000, or INR 5,000 per month.
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Atal Pension Yojana: Atal Pension Yojana (APY) is a social security scheme from the Government of India, focused on providing a steady source of income after the age of 60, mainly for unorganized sector workers who don't have access to any formal pension facility. It started in 2015 and continues to gain popularity, helping lakhs of Indians secure their old age.
Why Atal Pension Yojana is Important for India?
As many Indian citizens works in unorganized sectors and don't have regular retirement savings, Atal Pension Yojana become very important for their future. The main aim to introduce APY was to provide a fixed income during old age, reducing financial risk for families.
Atal Pension Yojana Latest Update
As of 31 March 2025, more than7.65 crore peoplehave enrolled under APY, and the scheme completed its 10th anniversary this year.
The total corpus collected so far is over INR 45,974 crore.
Around55% of new applicants in 2024-25 were women, indicating greater financial awareness among women now.
Annual return rate since inception is about9.11%.
Latest APY Updates:
Income Tax Payers Not Eligible: Since 1 October 2022, people paying income tax cannot enroll for APY. Only non-income-tax paying individuals between ages 18-40 are allowed to apply.
More Outreach:In 2025, the government did 32 special promotion and awareness programs for APY across India to increase enrollment.
Digital Process: APY application and ePRAN (Permanent Retirement Account Number) management can be done fully online now for smoother handling.
Features of Atal Pension Yojana
Guaranteed Monthly Pension
One of the main features is the guarantee of a fixed monthly pension at age 60. The subscriber can choose a pension from₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 per month.
How Monthly Pension is Decided?
Your chosen pension amount
Your age at time of joining
How many years you contribute—minimum 20 years is needed
More early you join, less you need to pay every month for same pension when you turn 60.
Government Guarantee & Security
Central Government guaranteesthe minimum pension amount for life.
If returns from your contributions go below the required rate for minimum pension, government will make up the shortfall. If your investment makes more, extra gains goes to your APY account.
In case subscriber dies, spouse continues to get pension. After both die, nominee receives accumulated corpus as lump sum payment.
Who is Eligible for Atal Pension Yojana?
Anycitizen of Indiacan join
Age must bebetween 18 to 40 years
Must have asavings bank or post office account
Mustnot be an income tax payerat the time of joining.
Documents Needed for APY Registration
Aadhaar card (optional, but helpful)
Mobile number
Bank passbook
How Much to Contribute?
Contribution depends on age and pension amount. Here’s a sample table for ₹5,000 pension per month slab:
Age at Entry | Monthly Contribution (₹) | Total Contribution (till 60) |
|---|---|---|
18 years | 210 | 50,400 |
25 years | 376 | 67,680 |
30 years | 577 | 82,680 |
35 years | 902 | 1,08,240 |
40 years | 1,454 | 1,74,480 |
Key Benefits of Atal Pension Yojana
Assured Income:Central Govt. guarantees fixed pension amount at retirement.
Benefits to Spouse & Nominee:If subscriber dies after 60, spouse will get same pension. If both die, nominee gets lump sum.
Easy to Join:Available in banks and major post offices. Application can be done online or by visiting branch.
Tax Benefits:Contributions are eligible under Section 80CCD(1B), up to ₹50,000—over and above Section 80C limit.
Flexible Payment:Choose monthly, quarterly or half-yearly installments.
Automatic Debit:No need to worry about missing payments; it is automatically debited from bank account.
Who Should Join Atal Pension Yojana?
Workers in unorganized sector such as drivers, maids, vendors, daily wage laborers
Small traders
Anyone who does not have EPF or any government/organized pension provision
Women planning for their secure future
Young people wanting affordable long-term retirement security
How to Apply for Atal Pension Yojana?
Visit your nearest bank or post office branch OR use digital platforms like UMANG, NSDL eNPS portal.
Fill APY registration form. Give Aadhaar and nominee details (Aadhaar is optional).
Choose the desired monthly pension amount.
Decide contribution frequency—monthly, quarterly, or half-yearly.
Submit the form. Bank will activate your APY account and start auto debit from your account.
Important Points to Remember
Keep sufficient balance before your scheduled debit date to avoid penalty charges.
If you default, a penalty of Re.1 per ₹100 per month is applicable for each missing debit.
On reaching 60, you start getting your monthly pension.
Premature exit is only allowed under certain cases like terminal illness or death.
Frequently Asked Questions
Yes, once every year you can change the pension slab.
Only allowed on death, or terminal illness. Otherwise, withdrawals before 60 are generally not permitted.
You can continue apy account (if joined when not a tax payer). But new enrollments are not allowed for existing tax payers.