Atal Pension Yojana

What is the Atal Pension Yojana (APY) scheme?

The Atal Pension Yojana scheme is a government-backed scheme designed to help all eligible Indian citizens, with a primary focus on those in the unorganised sector to prepare for their retirement. The scheme provides a guaranteed pension to the contributor, depending on the contribution amount and the length of time the person has contributed to the scheme.

What are the details and features of the Atal Pension Yojana?

Here are some of the details and features of the Atal Pension Yojana:

Pension options

The Atal Pension Yojana offers subscribers a Central Government-guaranteed minimum pension after the age of 60 years. Under the scheme, you can choose a monthly pension of ₹ 1,000, ₹ 2,000, ₹ 3,000, ₹ 4,000 or ₹ 5,000, which will be paid until death. Depending on your desired pension, contribution frequency and age, the contribution amount to be paid over the years will be determined  

Eligibility for Atal Pension Yojana

To be eligible for the Atal Pension Yojana, you must be a citizen of India and be between 18 and 40 years of age at the time of joining. You must have a bank account linked to your Aadhaar and a valid mobile number. Additionally, subscribers are required to make regular contributions for a minimum period of 20 years to qualify for the guaranteed pension benefits.

How to enroll in the scheme?

You can enrol in the Atal Pension Yojana either online or offline. Online enrolment can be done through your bank’s net banking facility. Alternatively, you can enrol offline by visiting the bank branch or post office where you have a savings account.

Nominee details

Under the Atal Pension Yojana scheme, the contributor can nominate a beneficiary. In the event of the contributor’s death, the spouse is entitled to receive the pension. If both the contributor and the spouse pass away, the accumulated pension corpus is paid to the nominated beneficiary.

Contribution schedule

The monthly contribution under Atal Pension Yojana depends on the following factors:

• The pension amount you choose, and

• The age at which you start contributing

The earlier you join, the lower your monthly contribution.

How to access Atal Pension Yojana account statements?

You can visit your nearest bank branch to get information about your invested capital under the Atal Pension Yojana scheme. In addition, periodic account updates are sent to your registered mobile number. Alternatively, you can also access your account details online by visiting the official APY/NPS CRA portal.

Annual account statement

Subscribers receive an annual physical account statement of their Atal Pension Yojana account at their registered address through postal mail.

What are the benefits of Atal Pension Yojana (APY)?

Below are some Atal Pension Yojana benefits​ you must know of:

Guaranteed pension

The Atal Pension Yojana scheme offers a guaranteed monthly pension to contributors after retirement. Since the scheme is backed by the Government of India, there is no risk of loss of capital.

Financial security

Guaranteed pension from Atal Pension Yojana ensures financial security to all the contributors, especially for unorganized sector workers. As the sector doesn’t have much access to formal retirement planning or social security benefits, this scheme may act as a source of income during the retirement.

Tax* benefits

Contributions made towards the Atal Pension Yojana are eligible for tax* benefits under Section 124*(Read with Schedule XV) of The Income Tax Act, 2025. Under Section 124*(Read with Schedule XV), individuals can claim a deduction of up to 10% of their gross total income, subject to an overall limit of ₹ 1.5 lakh. In addition, an extra deduction of up to ₹ 50,000 is available under Section 124*(Read with Schedule XV) for contributions made to the scheme.

Death benefit

In the event of the contributor’s death, the spouse is entitled to receive the pension. Upon the death of both the contributor and the spouse, the nominee will receive the accumulated corpus.

Exit option

Withdrawal from the Atal Pension Yojana is generally not permitted before the age of 60. However, early exit is allowed in exceptional cases such as terminal illness. If the contributor dies before attaining 60 years of age, the spouse has the option to exit the scheme and claim the accumulated corpus.  

What are the eligibility age criteria for the Atal Pension Yojana?

Below are the eligibility criteria for contributing to the Atal Pension Yojana:

Minimum age

The minimum age required to enroll in the Atal Pension Yojana is 18 years.

Maximum age

The maximum age for enrolling in the Atal Pension Yojana is 40 years.

How to open an Atal Pension Yojana account?

Below are the steps to open an Atal Pension Yojana account:

Atal Pension Yojana - apply online 

You can open an Atal Pension Yojana account online using your net banking facility. Log in to your bank’s net banking portal and register for the scheme online. You should check with your respective bank to confirm whether they provide this facility through net banking.

Through PoP-SP (Bank Branch/Post Office)

You can also open an Atal Pension Yojana account by visiting a bank branch or post office. You must fill in all the required details in the application form and submit it along with a photocopy of your Aadhaar card. Once your application is approved, you will receive a confirmation message on your registered mobile number. You can then start contributing to the account.

How to download the Atal Pension Yojana form?

You can download the Atal Pension Yojana application form directly from the Jan Suraksha website here: https://www.jansuraksha.gov.in/files/apy/ENGLISH/APPLICATIONFORM.pdf

Atal Pension Yojana contribution (APY Premium)

The contribution amount under the Atal Pension Yojana varies based on your age at the time of joining the scheme and the pension amount you choose for retirement. The earlier you join, the lower your monthly contribution will be. As your entry age increases, the monthly contribution required to receive the same pension also increases.

Save more by joining early

You can save more money by joining the Atal Pension Yojana scheme early in life. When you start young, you can contribute more over the years. Moreover, it allows you to make disciplined retirement savings, which slowly but steadily help you build a retirement fund.

Contribution rates by age

Here’s a table of contribution rates by age:

Age 40

If you join the Atal Pension Yojana scheme at the age of 40, your contribution can be as follows:

• If you opt for a ₹ 1,000 monthly pension, you need to contribute ₹ 291 every month

• If you opt for a ₹ 2,000 monthly pension, you need to contribute ₹ 582 every month

• If you opt for a ₹ 3,000 monthly pension, you need to contribute ₹ 873 every month

• If you opt for a ₹ 4,000 monthly pension, you need to contribute ₹ 1164 every month

• If you opt for a ₹ 5,000 pension, you need to contribute ₹ 1,454 per month

Potential pension savings for your family

Contributing regularly to the scheme and starting at a younger age allows you to create long-term financial security not just for yourself but also for your family. The Atal Pension Yojana provides retirement income along with death benefits to the spouse or nominee.

In cases of terminal illness, the scheme also allows early exit, allowing you to focus on your medical needs.

How to change your Atal Pension Yojana contribution amount?

You need to fill out the Subscriber Details Modification and Change of APY-SP Form to change your contribution amount. You can find the form here:

https://www.npscra.proteantech.in/nsdl/forms/Subscriber_details_Modification_and_Change_of_APY-SP_Form_English.pdf 

To change your Atal Pension Yojana contribution amount, you must submit the form at the bank branch or post office where your account is held. You can either upgrade or downgrade your pension amount:

• If you choose upgradation, you must pay the difference in contribution, calculated at 8% per annum with monthly compounding

• If you opt for downgradation, any excess contribution already paid will be refunded, along with the returns earned on that amount

A ₹ 50 processing fee applies for both.

It is important to note that changes to the Atal Pension Yojana contribution amount are allowed only once in a financial year and can be made only during April.

What are the charges for default in Atal Pension Yojana contribution payment?

If you miss or delay your Atal Pension Yojana contribution, you would have to pay a penalty based on your monthly contribution amount, as explained below.

• For a monthly contribution of up to ₹ 100, the penalty is ₹ 1 per month

• If your contribution is between ₹ 101 and ₹ 500 per month, the penalty charged is ₹ 2 per month

• For contributions ranging from ₹ 501 to ₹ 1,000 per month, a penalty of ₹ 5 per month applies

• If your monthly contribution exceeds ₹ 1,001, the penalty is ₹ 10 per month

What if you can’t contribute to the Atal Pension Yojana scheme?

If you are unable to make regular contributions to the Atal Pension Yojana, your account may be closed. Here are some things you need to know:

• If your contributions are not paid for six consecutive months, the account is frozen

• If you do not contribute for 12 months, the account is fully deactivated

• If you do not contribute for 24 months, the account will be closed. In this case, the account balance will be returned to you

Where are your Atal Pension Yojana contributions invested?

The contributions collected under the Atal Pension Yojana are managed and regulated by the Pension Fund Regulatory and Development Authority (PFRDA). The funds are invested in a diversified portfolio of government securities, equity and equity-related instruments, asset-backed securities, debt instruments, bank term deposits and money market instruments, among others.

How to change contribution frequency in Atal Pension Yojana?

You can change the contribution frequency in your Atal Pension Yojana account. The account offers options, such as monthly, quarterly or half-yearly payments. You can follow the steps given below:

• Visit the bank branch or post office where your account is maintained

• Submit a written request to change the contribution frequency

• Once the request is processed, the updated contribution frequency will be linked to your account

How to exit from the Atal Pension Yojana scheme?

You can only exit from the Atal Pension Yojana at the age of 60. When you turn 60, 100% of the accumulated pension in the account can be annuitised. You can then start receiving the guaranteed monthly pension as chosen at the time of enrolment.

Apart from this, there are some specific circumstances, such as death or terminal illness, where you can exit the scheme before you turn 60.

Steps to exit from Atal Pension Yojana (APY) before age 60

To exit the Atal Pension Yojana before the age of 60, you need to fill out the Voluntary Exit form. This form can be downloaded from the Atal Pension Yojana section of the National Pension System (NPS) website or collected directly from your bank or post office. After verification, the proceeds from the closure of your Atal Pension Yojana account will be credited to your linked savings bank account.

Steps to exit from Atal Pension Yojana (APY) due to death

If the early exit is being made due to the unfortunate event of the subscriber’s death, the claimant must submit the APY Closure Form (Death) along with a copy of the death certificate to the bank or post office. This form is also available on the official NPS/APY website or at the branch itself.

The scheme pays a monthly pension to the spouse in the absence of the subscriber. If the spouse is not alive, the money is paid to the nominee specified by the subscriber.

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