10 points to know about Atal Pension Yojana

The Government announced the introduction of universal social security schemes in the Insurance and Pension sectors for all Indians, specially the poor and the under-privileged, in the Budget for the year 2015-16. The Atal Pension Yojana (APY), is one such pension scheme launched by the government recently.


  1. Age of joining and contribution period – The minimum age of joining APY is 18 years and maximum age is 40 years. The age of exit and start of pension would be 60 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more. 
  1. Government’s Contribution – Government of India will also co-contribute 50% of the subscriber’s contribution or Rs. 1000 per annum, whichever is lower. Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and are not income tax payers 
  1. Atal Pension Yojana (APY) is open to all bank account holders 
  1. In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee 
  1. Exit before 60 years of age is not permitted. However it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease 
  1. Fixed pension for the subscribers ranging between Rs. 1000 to Rs. 5000, if he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late 
  1. Under APY, the individual subscribers shall have an option to make the contribution on a monthly basis. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Rs. 1 per month to Rs 10/- per month 
  1. The amount collected under APY are managed by Pension Funds appointed by PFRDA as per the investment pattern specified by the Government. The subscriber has no option to choose either the investment pattern or Pension Fund 
  1. Periodical information to the subscribers regarding balance in the account, contribution credits etc. will be intimated to APY subscribers by way of SMS alerts. The subscribers will have the option to change the non – financial details like nominee’s name, address, phone number etc whenever required. 
  1. 10. Pension amount and contribution: 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. So, the amount of contribution depends upon the age and the amount of pension.


This scheme is unique and very helpful to all, especially people working in unorganized sector such as housemaids, drivers, attenders, etc. I urge the readers of this article to promote this scheme among your known circle and help the underprivileged people during their old age.


Thought for the day

Never be afraid to help others in their time of need. You never know when you may need that shoulder to lean on.


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About B E Kumar Prasad

B E Kumar Prasad
He is a Practicing Chartered Accountant in Bengaluru, India. He has 25+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional and Registered Valuer (F&SA).Prasad welcomes your comments and questions. Please email him at [email protected]

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2022 years ago

Is that ,I will able to get back lumsum amount in a future …please give the details with example

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