The Atal Pension Yojana (APY), launched on May 9, 2015, is a government-backed pension scheme designed to provide financial security to workers in the unorganized sector in India. As of April 2025, APY has surpassed 7.65 crore subscribers and holds a total corpus of Rs 45,974.67 crore. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Eligibility

Any Indian citizen between 18 and 40 years old can join the APY scheme. However, since October 1, 2022, any citizen who is or has been an income tax payer is not eligible to join APY. An APY account requires a savings bank account or a post office savings bank account. Aadhaar may be required at the time of enrollment. A valid mobile number is also required.

Benefits

The APY scheme provides a guaranteed minimum monthly pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000, starting at the age of 60 years. The amount of the pension depends on the contributions made by the subscriber. The minimum period of contribution under APY is 20 years or more.

The benefits of the APY scheme are: * Guaranteed minimum pension: Each subscriber receives a guaranteed minimum pension amount ranging from Rs 1,000 to Rs 5,000 per month after the age of 60 until death. The minimum pension is guaranteed by the Central Government. If the actual realized returns on the pension contributions are less than the assumed returns for the minimum guaranteed pension, the Central Government will fund the inadequacy. * Pension to spouse: After the subscriber's demise, the spouse is entitled to receive the same pension amount as the subscriber until their death. * Return of pension wealth to nominee: After the death of both the subscriber and the spouse, the nominee of the subscriber is entitled to receive the pension wealth accumulated until the age of 60 of the subscriber.

If the subscriber dies before the age of 60, the spouse has the option to continue contributing to the APY account for the remaining vesting period, until the original subscriber would have attained the age of 60 years. The spouse would then be entitled to receive the same pension amount as the subscriber until the death of the spouse. After the death of both, the subscriber and the spouse, the nominee of the subscriber is entitled to receive the pension wealth accumulated until the age of 60 years of the subscriber. If the spouse does not wish to continue with the account, the corpus amount will be returned to the spouse or nominee.

How to Apply

To enroll in APY, an individual can approach the bank branch where their savings account is held or apply through online internet banking if the bank offers such a facility. They can also join digitally through the e-APY portal or the web portal of banks that provide this facility.

The general steps to enroll are: 1. Fill out the APY application form. The forms are available in different languages. 2. Provide details such as nominee details, and the pension amount and frequency of contribution. 3. Submit the form to the bank. 4. Aadhaar may be required for e-KYC. 5. Once the application is processed and the account is opened, the individual will be notified by SMS.

Other Key Details

Subscribers are required to contribute the prescribed amount from the age of joining APY until the age of 60 years. The contribution can be made on a monthly, quarterly, or half-yearly basis through auto-debit from the savings account. The contribution amount varies based on the age of entry and the selected pension tier.

The APY scheme is portable, meaning subscribers can continue with the same scheme even if they move to a different location within the country. Subscribers can opt to decrease or increase their pension amount during the accumulation phase, as per the available monthly pension amounts.

The APY scheme offers tax benefits under the National Pension System (NPS) scheme, as per the notification by the Government of India.

In conclusion, the Atal Pension Yojana is a valuable social security scheme that provides a guaranteed minimum pension to workers in the unorganized sector, thereby ensuring financial security in their old age.