The Government of India’s flagship social security scheme, the Atal Pension Yojana (APY), completed 11 years on May 9, 2026. Launched in May 2015, the scheme aims to provide financial security to citizens after retirement by offering a guaranteed monthly pension ranging from ₹1,000 to ₹5,000 after the age of 60. The scheme is primarily targeted at workers in the unorganised sector and allows eligible citizens between 18 and 40 years of age to invest regularly for their retirement. Key features of Atal Pension Yojana Indian citizens aged between 18 and 40 years are eligible to join the scheme. Subscribers can choose a guaranteed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 after turning 60. Contributions made under the scheme are eligible for tax benefits under Section 80CCD of the Income Tax Act. Income tax payers are not eligible to enroll in the scheme. A savings bank account, Aadhaar card, and active mobile number are mandatory for registration. Minimum 20-year investment required Under APY, subscribers are required to contribute for at least 20 years. The amount invested depends on the pension amount selected and the age at which the subscriber joins the scheme. An individual joining at the age of 18 needs to contribute a lower amount, while those joining later have to contribute more to receive the same pension benefits. Contribution amount based on entry age If a subscriber joins at 18 years of age Contribution slabs for subscribers aged 19 to 39 are also available through banks and online portals. Flexible investment options Subscribers can choose to make contributions on a monthly, quarterly, or half-yearly basis. The contribution amount is auto-debited directly from the subscriber’s savings account. Pension benefits for spouse and nominee In case of the subscriber’s death after retirement, the spouse continues to receive the same pension amount. After the death of both the subscriber and spouse, the accumulated pension corpus is returned to the nominee. If the subscriber dies before attaining 60 years of age, the spouse can either continue contributing to the APY account or withdraw the accumulated amount. Taxpayers not eligible The Central Government made income taxpayers ineligible for the scheme from October 1, 2022. Individuals paying income tax cannot open a new APY account. Frequently asked questions 1. Can APY be opened without a savings account? No. A savings bank account is mandatory for opening an APY account. 2. How is the contribution date decided? The contribution date is determined according to the date of the first deposit. 3. Is nomination mandatory? Yes. Every subscriber must appoint a nominee. 4. How many APY accounts can a person open? Only one APY account is allowed per individual. 5. What happens if there is insufficient balance in the account? If the account does not have enough balance for auto-debit, a penalty may be charged.
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