Atal Pension Yojana (APY) is a great plan that helps young people save money for their future. This plan is especially for those who are between 18 to 40 years old and do not pay income tax. The main aim of Atal Pension Yojana is to give you money when you are old, so you don’t need to worry.
This scheme is really helpful for workers who are in the unorganized sector. These workers may not have a fixed job or regular income. With the Atal Pension Yojana, they can save a little money every month. This way, they can have a good amount saved by the time they retire.
Saving for retirement is super important, and the Atal Pension Yojana makes it easier for everyone. The more you save now, the better life you can have later on.
About Atal Pension Yojana (APY)
Here is the information about Atal Pension Yojana (APY) in bullet points:
- Social security scheme launched by the Government of India in May 2015.
- Aimed at providing pension benefits to workers in the unorganized sector.
- Administered by the Pension Fund Regulatory and Development Authority (PFRDA).
- Offers a guaranteed pension ranging from ₹1,000 to ₹5,000 per month, based on contributions.
- Eligibility:
- Indian citizens aged between 18 and 40 years.
- Must have a savings bank account.
- Minimum contribution period of 20 years to receive pension benefits starting at the age of 60.
- Government contribution of 50% of the total contribution or ₹1,000 per year (whichever is lower) for eligible subscribers for five years.
- Premature withdrawal is restricted, and allowed only in cases of death or terminal illness.
- Designed to provide financial security in old age, especially for those in the informal sector without formal pension coverage.
Key Summary of Atal Pension Yojana (APY) 2024
| Scheme Name | Atal Pension Yojana (APY) |
| Launched By | Government of India |
| Administered By | Pension Fund Regulatory and Development Authority (PFRDA) |
| Launch Date | May 2015 |
| Target Group | Unorganized sector workers |
| Objective | Provide pension benefits to workers in the unorganized sector |
| Eligibility | – Indian citizens – Age between 18 and 40 years – Must have a savings bank account |
| Pension Amount | Guaranteed pension of ₹1,000 to ₹5,000 per month, depending on the contribution |
| Contribution Period | Minimum of 20 years |
| Government Co-Contribution | 50% of the total contribution or ₹1,000 per annum, whichever is lower, for eligible subscribers |
| Exit Age for Pension | 60 years |
| Withdrawal | Full withdrawal not allowed before 60 years, except in the case of death or terminal illness |
Atal Pension Yojana Chart 2024
Atal Pension Yojana Eligibility
- The minimum age of joining APY is 18 years and maximum is 40 years.
- The age of exit and start of pension is 60 years.
- Subscriber contribution to APY shall be made through the facility of ‘auto-debit’ of the prescribed contribution amount from the savings bank account of the subscriber on monthly, quarterly or half-yearly basis.
- The subscribers are required to contribute the prescribed contribution amount from the age of joining APY till the age of 60 years.
Exclusions
- From 1st October, 2022, any citizen who is or has been an income tax payer, shall not be eligible to join APY.
The Benefits of the Atal Pension Yojana (APY)
- Guaranteed minimum pension amount: Each subscriber under APY shall receive a guaranteed minimum pension of Rs. 1000/- per month or Rs. 2000/- per month or Rs. 3000/- per month or Rs. 4000/- per month or Rs. 5000/- per month, after the age of 60 years until death.
- Guaranteed minimum pension amount to the spouse: After the subscriber’s demise, the spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber,until death.
- Return of the pension wealth to the nominee of the subscriber: After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till the subscriber’s age of 60 years.
- Contributions to the Atal Pension Yojana (APY) are eligible for tax benefits similar to the National Pension System (NPS) under section 80CCD(1).
Atal Pension Yojana Application Process
Process 1:
- One can also open an APY account online using one’s Net banking facility.
- The applicant can login into his/her internet banking account and search for APY on dashboard.
- Customer has to fill basic and Nominee details.Customer has to give consent for auto debit of premium from the account and submit the form.
Process 2:
Visit website “https://enps.nsdl.com/eNPS/NationalPensionSystem.html “ and select “Atal Pension Yojana”.
Select “APY Registration”
Fill the basic details in the form. One can complete KYC through 3 options –
- Offline KYC – Where one has to upload XML file of Aadhaar
- Aadhaar – Where KYC is done through OTP verification on Mobile Number register with Aadhaar
- Virtual ID – Where Aadhaar virtual ID is created for KYC
Citizen can select either one of three options.
Once the basic details are filled, an acknowledgement number is generated.
- Citizen then has to fill personal details and decide the pension amount he/she wants after 60 years.
- The Citizen also has to decide the frequency of contribution for the scheme.
- Once the citizen “confirms” for personal details, he/she has to then fill nominee details.
- After submitting the personal and Nominee details, Citizen is redirected to NSDL website for eSign.
- Once Aadhaar is OTP verified, Citizen gets successfully registered in APY.
- One can also join digitally through e-APY portal or through web portal of banks providing such facility.
Contact Us
Helpline Number – Toll Free Helpline number for APY Scheme is 1800-110-069
FAQ’s
What is Atal Pension Yojana (APY)?
Atal Pension Yojana (APY) is a government-backed pension scheme that aims to provide pension benefits to workers in the unorganized sector. It offers a guaranteed pension ranging from ₹1,000 to ₹5,000 per month based on the contributions made.
Who is eligible to join the APY?
Indian citizens between the ages of 18 to 40 years are eligible to join APY. The individual must also have a savings bank account to enroll in the scheme.
What is the contribution period for APY?
Subscribers need to contribute to the scheme for a minimum of 20 years to become eligible for pension benefits that start at the age of 60.
How much pension will I receive under APY?
The pension amount varies based on the subscriber’s contributions and ranges from ₹1,000 to ₹5,000 per month.
Is there a government contribution in the APY?
Yes, for eligible subscribers, the government contributes 50% of the total contribution or ₹1,000 per annum, whichever is lower, for a period of five years.
What happens if I miss a contribution?
In case of missed payments, a subscriber’s account will face penalties:
- ₹1 per month for contributions up to ₹100.
- ₹2 per month for contributions between ₹101 and ₹500.
- ₹5 per month for contributions between ₹501 and ₹1,000.
- ₹10 per month for contributions above ₹1,001.
- If contributions are not paid for six months, the account will be frozen, and if
- not paid for 12 months, it will be closed.
When will I receive my Pension?
Age Of Start Of Pension is 60 Years.
I am a Swavalamban subscriber. Can I still, apply for APY?
Eligible Swavalamban Subscribers may be migrated to APY.