Atal Pension Yojana (APY): Over 7.65 crore people in India have enrolled in the Atal Pension Yojana (APY), a government scheme offering a lifetime pension of up to Rs 60,000.
As of April 2025, the scheme’s total balance has reached Rs 45,974.67 crore, setting a new record.
Increasing Women’s Participation
The participation of women in this scheme has been rising steadily. Currently, about 48% of APY’s members are women, and more than 55% of new applicants in the 2024–25 financial year are women.
What Is Atal Pension Yojana?
Launched on May 9, 2015, and implemented from June 1, 2015, Atal Pension Yojana aims to provide financial security to workers in the unorganized sector after retirement.
Anyone between the ages of 18 and 40 can join the scheme. From the age of 60, they will receive a guaranteed monthly pension ranging from Rs 1,000 to Rs 5,000.
Key Features of the Scheme
Minimum Investment Period: 20 years
Eligibility: Only those who do not pay income tax (as per the rule effective from October 1, 2022)
Contributions: Payments can be made monthly, quarterly, or every six months through auto-debit from a bank or post office account.
Pension Amount: The monthly contribution depends on the person’s age.
Managing Authority: Pension Fund Regulatory and Development Authority (PFRDA)
Contribution Example:
If someone wants a pension of Rs 1,000 per month, they will need to contribute the following amounts based on their age:
At age 19: Rs 46 per month
At age 24: Rs 70 per month
At age 29: Rs 106 per month
At age 34: Rs 165 per month
At age 39: Rs 264 per month
These contributions must continue until the individual turns 60. By age 60, the total corpus created is around Rs 1.7 lakh.
What Happens After Death?
If the account holder passes away after age 60, their spouse will continue to receive the same monthly pension.
After both the account holder and spouse pass away, the entire corpus is returned to the nominee.
Who Should Consider This Scheme?
This scheme is ideal for people who:
Come from a low-income background
Do not pay income tax
Work in the unorganized sector (such as laborers, small shopkeepers, domestic workers)
Are not covered under EPF or any other government pension scheme
What Happens if Payments Are Delayed?
If payments are delayed and there’s no money in the account, a penalty of Rs 1 will be added for every Rs 100 unpaid.
This penalty is added to the pension fund. If payments are missed repeatedly and the account balance reaches zero, the government may close the scheme and withdraw its support.
Today, the Atal Pension Yojana has become a crucial source of social security for millions in India, particularly in rural areas and among women.
Its popularity continues to grow as more people realize the benefits of this government-backed retirement plan.
