Atal Pension Yojana (APY): Pension Amount, Eligibility, and Key Rules
Not everyone has access to provident funds, employer pensions, or structured retirement plans. The Atal Pension Yojana recognises this reality and provides an affordable pension option for individuals who want long-term security without complex investment decisions or high contributions.
What is Atal Pension Yojana (APY): Guaranteed Pension for Retirement Security
The Atal Pension Yojana is a government-backed pension scheme designed mainly for workers in the unorganised sector. It offers a guaranteed monthly pension after the age of 60, helping individuals build retirement security through small and regular contributions during their working years.
Atal Pension Scheme Details
| Particulars | Details |
| Scheme Name | Atal Pension Yojana (APY) |
| Ministry | Ministry of Finance, Government of India |
| Target Beneficiaries | Workers in the unorganised sector and savings bank account holders |
| Age Eligibility | 18 to 40 years at the time of joining |
| Pension Start Age | 60 years |
| Pension Amount | ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month |
| Contribution Method | Auto debit from savings bank or post office account |
| Contribution Frequency | Monthly, quarterly, or half-yearly |
| Spouse Benefit | Same pension amount payable to spouse after subscriber’s death |
| Nominee Benefit | The entire accumulated pension wealth is paid to the nominee |
| Tax Benefits | Eligible under Section 80CCD(1) |
| Application Mode | Online and offline |
| Where to Apply | Bank branches, post offices, NSDL eNPS portal |
| Documents Required | No separate documents; KYC fetched from savings account |
| Grievance Redressal | www.npscra.nsdl.co.in |
APY Benefits
Here are some of the benefits of Atal Pension Yojana (APY)
- On exit at the age of 60 years
Once the subscriber attains 60 years of age, APY provides three clear benefits.
- The subscriber receives a guaranteed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 for life, depending on the contribution chosen.
- After the subscriber’s death, the same pension amount continues to be paid to the spouse for their lifetime.
- Once both the subscriber and spouse pass away, the entire accumulated pension wealth is returned to the nominee.
- APY Tax benefits
Contributions made to the Atal Pension Yojana are eligible for tax benefits under Section 80CCD(1), similar to those available under the National Pension System.
- Voluntary exit before 60 years
If the subscriber exits the scheme before the age of 60, only the total contributions made are refunded, along with the net actual returns earned, after deducting account maintenance charges.
Subscribers who joined APY before 31 March 2016 and received a government co-contribution will not receive that co-contribution or the returns earned on it.
- In case of death before 60 years
If the subscriber dies before turning 60, the spouse can choose to continue the APY account and complete the remaining contribution period until the original retirement age.
In this case, the spouse will receive the same pension amount for life.
Alternatively, the spouse or nominee may opt to receive the entire accumulated pension corpus immediately.
Atal Pension Yojana (APY) Eligibility
- The scheme is open to individuals between 18 and 40 years of age at the time of joining.
- Pension benefits begin once the subscriber reaches 60 years of age.
- Contributions must be made regularly from the joining age until 60 years.
- A savings bank account is required, as contributions are collected through auto debit on a monthly, quarterly, or half-yearly basis.
Open a zero-balance savings account online and start banking without minimum balance requirements.
Who Cannot Join APY
- From 1 October 2022 onwards, anyone who is or has been an income tax payer is not eligible to enroll in the Atal Pension Yojana.
How to Apply for Atal Pension Yojana- APY Application
Planning for retirement does not have to start with large savings, and APY makes it possible to secure a guaranteed pension through a simple and accessible application process.
Online APY Application Process
Step 1: Through net banking
You can open an APY account directly through your bank’s net banking facility.
- Log in to your internet banking account.
- Look for the Atal Pension Yojana option on the dashboard.
- Fill in the basic details and nominee information.
- Next, you need to give consent for auto debit of contributions from your savings account.
- Submit the form to complete the application.
Step 2: Through the NSDL eNPS portal
- Visit https://enps.nsdl.com/eNPS/NationalPensionSystem.html and select Atal Pension Yojana, followed by APY Registration.
- Fill in the basic details and complete KYC using any one of the three options: offline KYC by uploading the Aadhaar XML file, Aadhaar-based OTP verification, or Aadhaar virtual ID.
- After submission, an acknowledgement number is generated. You then need to enter personal details, choose the pension amount and contribution frequency, and add nominee details.
- The final step involves eSign through Aadhaar OTP verification on the NSDL portal, after which the APY registration is completed.
Step 3: eAPY Portal
APY can also be opened digitally through the eAPY portal or through bank websites that offer this facility. For any assistance, the toll-free helpline number for the Atal Pension Yojana is 1800 110 069.
Offline APY Application
Those who prefer an offline process can visit the nearest bank branch or post office where they hold a savings account.
By submitting the duly filled APY registration form along with the required details, the APY account can be opened with assistance from the branch staff.
APY Documents
No separate documents are usually needed, as KYC details are automatically fetched from the active savings account held with the bank or post office at the time of APY registration.
Is APY or APS the Same?
No, APY and APS are not the same.
APY refers to Atal Pension Yojana, a contributory pension scheme, while APS officially refers to the Annapurna Scheme, a food security programme for indigent senior citizens.
Conclusion
The Atal Pension Yojana remains a practical retirement option for individuals who do not have access to formal pension benefits and want certainty rather than market risk.
With a guaranteed monthly pension, government backing, and a simple contribution structure, APY offers basic income security in old age. While the pension amount may not fully offset inflation in the long term, it serves as a stable foundation for retirement planning, especially for workers in the unorganised sector.
Disclaimer– The rankings and figures in this article have been compiled from multiple verified reports, credible news sources, and public financial data available as of 2025.
All values are approximate and may vary with newer updates, revisions, or changes in official records.
Atal Pension Yojana – FAQs
The Atal Pension Yojana is a government-backed pension scheme mainly for workers in the unorganised sector, offering a guaranteed monthly pension after the age of 60.
The monthly contribution depends on the age at entry and the pension chosen, ranging from about ₹42 per month for an 18-year-old opting for ₹1,000 pension to around ₹291 per month for a 40-year-old.
APY contributions are flexible and can be paid monthly, quarterly, or half-yearly through auto debit from a savings account.
The scheme was launched by the Government of India on 9 May 2015 and was introduced by the then Finance Minister Arun Jaitley.
Full withdrawal is allowed only after reaching 60 years of age, while early exit is permitted with limited benefits.
APY is considered good for individuals without any formal retirement or pension benefits.
The maximum pension is capped at ₹5,000 per month, which may not be sufficient in the long term due to inflation.
The pension is paid monthly for life, and the accumulated corpus is returned to the nominee only after the death of both the subscriber and the spouse.
If death occurs before 60, the spouse can continue contributions or withdraw the corpus, while death after 60 ensures a lifelong pension for the spouse and corpus payout to the nominee thereafter.
