Atal Pension Yojana (APY) is a government-backed pension scheme focused on workers in the unorganised sector — drivers, domestic workers, shopkeepers, farm labourers and the self-employed — who usually have no retirement cover. Subscribers get a guaranteed monthly pension of ₹1,000 to ₹5,000 after the age of 60, depending on their contribution.
How the Pension Works
- You choose a pension slab: ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 per month.
- Your monthly contribution depends on the slab and your age at joining — the younger you join, the smaller the contribution. For example, joining at 18 for a ₹1,000 pension costs roughly ₹42 a month, while a ₹5,000 pension costs about ₹210 a month; joining at 40 costs several times more.
- Contributions are auto-debited monthly, quarterly or half-yearly from your savings account.
- After the subscriber’s death, the same pension continues to the spouse; after both, the accumulated corpus (indicative ₹1.7 lakh to ₹8.5 lakh depending on slab) goes to the nominee.
Who Can Join?
- Any Indian citizen aged 18 to 40 years with a savings bank or post office account.
- From 1 October 2022, income-tax payers are not allowed to open new APY accounts — the scheme is reserved for those outside the tax net.
Documents Required
- Aadhaar card
- Active savings bank / post office account
- Mobile number
- Nominee details (mandatory)
How to Enrol
- Visit your bank branch or post office and fill the APY registration form, or
- Enrol digitally through your bank’s net-banking / mobile app if it offers APY onboarding.
- Choose your pension slab and contribution frequency; keep your account funded for the auto-debit date.
What If You Miss Contributions?
A small overdue interest is charged for delayed contributions. If the account is not funded for a long period, it can be frozen and eventually closed, so it is important to keep the linked account active.
Frequently Asked Questions
Can I increase or decrease my pension slab later? Yes, once a year, with the contribution adjusted accordingly.
Can I exit before 60? Voluntary exit is allowed, but you generally get back only your contributions plus the actual earned income on them; the government guarantee applies only at 60.
Note: Contribution charts and rules are published by PFRDA. Verify the exact contribution for your age and slab at your bank or on the official PFRDA/APY pages.