Atal Pension Yojana, especially focused on the unorganised sector workers, is a government-backed pension scheme for Indian citizens. Under the APY, subscribers will receive a guaranteed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, and Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY.

What will you get under APY?
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 the subscriber joins early and increase if he joins late.


The government of India has made the Atal Pension Yojana’s qualifying requirements as simple as possible so that as many individuals as possible can participate in the scheme and benefit from it. Three basic eligibility criteria for the APY pension system are as follows:

It is necessary for you to be an Indian citizen.

When applying for the plan, you must be between the ages of 18 and 40.

ch itself would be based on the age of joining the APY.

The minimum age of joining APY is 18 years and the maximum age is 40 years. Therefore, the minimum period of contribution by any subscriber under APY would be 20 years or more.

Any bank must need you to have a KYC compliant bank account.

To apply for APY, you only need to meet these basic requirements. However, having a legitimate and operating bank account with the minimum required balance is one of the scheme’s basic conditions. It is the individual’s responsibility to maintain a minimum balance in their bank account.

APY Features:

Contributions can be paid monthly, quarterly, or half-yearly, and the amount is determined by the age, frequency of the scheme’s instalments, and the desired amount after 60 years. The contribution, on the other hand, rises with the contributor’s age.

The APY pension system offers five alternative monthly pension options, based on their instalments: Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, and Rs. 5,000.

One of the most important elements to remember is that the contributor cannot withdraw funds prior to the scheme’s conclusion, with the exception of contributions and interest gained on them, which may be taken in exceptional situations, such as terminal illness.

APY applications can be submitted both online and offline. Applicants for the offline applications must go to their local bank branch and fill out a form.

The subscriber is responsible for paying account maintenance fees. These, as well as the interest earned on the investments, will be removed from the account.

In the event of non-compliance, a penalty of Rs 1 per Rs 100 of monthly contribution would be imposed.

APY pension scheme benefits

Death benefits

Because the spouse is the default nominee, if the contributor or subscriber to the scheme dies, the spouse will be eligible to receive benefits under the APY. In the event of the contributor’s and his or her spouse’s death, the predetermined corpus amount will be distributed to the named nominee.

Retirement benefits

As the name implies, the monthly pension will be paid out automatically to the subscriber’s account after they reach the age of 60, based on the payments made by the subscriber.

Tax benefits

To encourage people to engage in the plan, the Indian government offers tax incentives on APY contributions. In addition to the deduction under Section 80C, investments or gifts to the Atal Pension Yojana are eligible for a deduction of Rs. 50,000 under Section 80CCD (1B). The subscriber will be able to reduce their taxable income as a result of this.