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Atal Pension Yojana: A Comprehensive Guide

atal pension yojana

Introduction to Atal Pension Yojana

Atal Pension Yojana (APY) is a government-backed pension scheme in India aimed at providing a steady income post-retirement to individuals working in the unorganized sector. Launched in 2015 by the Government of India, this scheme encourages workers to voluntarily save for their retirement, ensuring they have financial security in their old age. APY primarily targets low-income earners and aims to address the issue of longevity risk by providing a guaranteed minimum pension.

Key Features of Atal Pension Yojana

Eligibility Criteria

To be eligible for APY, individuals must meet the following criteria:

  1. Age Requirement: Individuals must be between 18 and 40 years old.
  2. Bank Account: A savings bank account or post office savings account is mandatory.
  3. Income Tax Payer Status: From October 1, 2022, income tax payers are not eligible to join APY.

Contribution and Pension Amount

Subscribers to APY can choose their contribution amount based on their desired pension. The contributions are auto-debited from the subscriber’s savings account. The pension amounts available are ₹1,000, ₹2,000, ₹3,000, ₹4,000, and ₹5,000 per month, starting at the age of 60. The contribution period extends from the age of joining until the subscriber turns 60.

Benefits on Maturity

Upon reaching the age of 60, the subscriber receives the guaranteed minimum pension amount chosen at the time of enrollment. The scheme also provides the following benefits:

  1. Pension for Spouse: After the subscriber’s death, the spouse receives the same pension amount until their death.
  2. Return of Corpus: Upon the demise of both the subscriber and the spouse, the nominee receives the accumulated pension corpus.

Tax Benefits

Contributions to APY are eligible for tax benefits under Section 80CCD(1) of the Income Tax Act, similar to the National Pension System (NPS).

Application Process

Online Enrollment

Individuals can enroll in APY online through their bank’s internet banking portal or through the eNPS portal. The process involves filling out personal and nominee details, consenting to auto-debit, and completing KYC verification through Aadhaar or offline methods.

Offline Enrollment

Subscribers can also enroll in APY by visiting their bank branch, filling out the necessary forms, and submitting KYC documents.

Grievance Redressal

Subscribers can raise grievances free of cost through the NPS Lite or CGMS portal. Each grievance receives a token number for tracking its status.

Charges and Penalties

The scheme imposes charges and penalties for delayed or missed contributions. These charges are determined by the Pension Fund Regulatory and Development Authority (PFRDA) in consultation with the central government.

Scenarios of Death Before Maturity

In case of the subscriber’s death before 60 years of age, the spouse has the option to continue the contributions or receive the accumulated corpus. This ensures the financial stability of the family in the absence of the subscriber.


Individuals who are or have been income tax payers are excluded from APY. This exclusion ensures that the benefits of the scheme reach the intended lower-income segments of the population.

Frequently Asked Questions

When will I receive my Pension?

Subscribers start receiving their pension at the age of 60.

Can a Swavalamban subscriber join APY?

Yes, eligible Swavalamban subscribers can migrate to APY.

Is it necessary to nominate someone while joining APY?

Yes, providing nomination details is mandatory during enrollment.

What happens if my contribution is delayed?

Subscribers face overdue interest charges for delayed contributions.


Atal Pension Yojana provides a reliable financial safety net for unorganized sector workers in India. By offering a guaranteed minimum pension and ensuring benefits for spouses and nominees, APY promotes financial inclusion and security. For those eligible, it’s a step towards a financially secure retirement.

For more details and to apply for Atal Pension Yojana, visit the official website.

If you need a convenient way to keep track of your APY details, consider getting an Atal Pension Yojana PVC Card from our website.

For additional information and resources:

Join APY today and secure your financial future with a guaranteed pension.

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