Atal Pension Yojana (APY) addresses the old age income security of the working poor and the longevity risks among the workers in unorganised sector. It encourages the workers in unorganised sector to voluntarily save for their retirement. The Government had launched the scheme with effect from 1st June, 2015. The scheme replaces the Swavalamban Yojana / NPS Lite scheme. Benefits of APY The benefit of minimum pension is guaranteed by the Government of India. For the minimum guaranteed pension, In case the actual realized returns on the pension contributions are less than the assumed returns, the shortfall is funded by the Government of India. On the other hand, in case the actual realized returns on the pension contributions are higher than the assumed returns, such higher scheme benefit shall be passed on to the subscribers You can choose the minimum pension amount from the 5 slabs available, i.e, Rs.1000, 2000, 3000, 4000, 5000/- The monthly pension is available to the subscriber, and after him to his spouse and after their death, the pension corpus, as accumulated at age 60 of the subscriber, would be returned to the nominee of the subscriber. In case of premature death of subscriber (death before 60 years of age), spouse of the subscriber can continue contribution to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 year Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National Pension System (NPS). The tax benefits include the additional deduction of Rs 50,000 under section 80CCD(1). Eligibility for APY The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, the minimum period of contribution by any subscriber under APY would be 20 years or more. For opening an APY account, you need to be a citizen of India. You can join the APY scheme if you fulfil the following criteria: You need to have a savings bank account with any bank or a post office . If you are or have ever been an income tax payer from 1st October 2022 onwards, then you will not be eligible to join the APY scheme. In case you join the APY scheme on or after 1st October 2022, and it is later found out that you have been an income tax payer on or before the date of application, then your APY account will be closed. You will receive all the wealth accumulated in your account until the date of closure. Enrollment and Subscriber Payment All citizens of India (non-taxpayers) can open an APY account either offline or online. Here are the details for both the ways to enrol conveniently for APY: All bank account holders under the eligible category may join APY with auto-debit facility to accounts, leading to reduction in contribution collection charges. Online You can open your APY account digitally. You must link your Aadhaar with your mobile number to avail of the online APY account opening facility. Fill out the required details correctly - savings account number, email ID, Aadhaar number, etc. in the online APY registration form. Once the signup is done, enter the login details and complete KYC formalities at the comfort of your home. After the successful registration you will receive an email with the acknowledgement number for APY registration. Offline Collect the APY registration form from a PoP You can submit the filled-in APY account opening form to the POP -SP, i.e., a bank or a post office where you have a savings account. All banks (nationalized banks, private banks, banking companies, cooperative banks, regional rural banks, etc.) act as POP-SPs directly or indirectly (via other enablers). Enablers include the following options: Existing non-banking aggregators / business correspondents / micro finance institutions, etc. Facilitators appointed by the PFRDA or the Central Government. Operational Framework of APY It is Government of India Scheme, which is administered by the Pension Fund Regulatory and Development Authority. The Institutional Architecture of NPS would be utilised to enroll subscribers under APY. Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the nominee of subscribers The Table of contribution levels, fixed monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period is given below. For example, to get a fixed monthly pension between Rs. 1,000 per month and Rs. 5,000 per month, the subscriber has to contribute on monthly basis between Rs. 42 and Rs. 210, if he joins at the age of 18 years. For the same fixed pension levels, the contribution would range between Rs. 291 and Rs. 1,454, if the subscriber joins at the age of 40 years. Table of contribution levels, fixed monthly pension of Rs. 1,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana Age of Joining Years of Contribution Indicative Monthly Contribution(in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 42 1,000 1.7 Lakh 20 40 50 1,000 1.7 Lakh 25 35 76 1,000 1.7 Lakh 30 30 116 1,000 1.7 Lakh 35 25 181 1,000 1.7 Lakh 40 20 291 1,000 1.7 Lakh Table of contribution levels, fixed monthly pension of Rs. 2,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana. Age of Joining Years of Contribution Indicative Monthly Contribution(in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 84 2,000 3.4 lakh 20 40 100 2,000 3.4 lakh 25 35 151 2,000 3.4 lakh 30 30 231 2,000 3.4 lakh 35 25 362 2,000 3.4 lakh 40 20 582 2,000 3.4 lakh Table of contribution levels, fixed monthly pension of Rs. 3,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana. Age of Joining Years of Contribution Indicative Monthly Contribution(in Rs.) Monthly Pension to the subscribers and his spouse(in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 126 3000 5.1 Lakh 20 40 150 3000 5.1 Lakh 25 35 226 3000 5.1 Lakh 30 30 347 3000 5.1 Lakh 35 25 543 3000 5.1 Lakh 40 20 873 3000 5.1 Lakh Table of contribution levels, fixed monthly pension of Rs. 4,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana. Age of Joining Years of Contribution Indicative Monthly Contribution(in Rs.) Monthly Pension to the subscribers and his spouse(in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 168 4000 6.8 Lakh 20 40 198 4000 6.8 Lakh 25 35 301 4000 6.8 Lakh 30 30 462 4000 6.8 Lakh 35 25 722 4000 6.8 Lakh 40 20 1164 4000 6.8 Lakh Table of contribution levels, fixed monthly pension of Rs. 5,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana. Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 210 5000 8.5 Lakh 20 40 248 5000 8.5 Lakh 25 35 376 5000 8.5 Lakh 30 30 577 5000 8.5 Lakh 35 25 902 5000 8.5 Lakh 40 20 1454 5000 8.5 Lakh For more information, contact APY Information Desk -Whatsapp Number for query resolution : +91-8588852130 Source: National Pension System Trust Related resources FAQs on APY APY calculator Online services related to APY