Atal Pension Yojana
Why in News?
The Atal Pension Yojana (APY) is recently in the news for achieving a historic milestone on 21 April 2026, surpassing 9 crore (90 million) total gross enrolments since its inception in 2015.
About Atal Pension Yojana
- Launch Date: 9 May 2015.
- Target Group: Primarily focused on the poor, underprivileged, and workers in the unorganised sector.
- Administering Body: Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System (NPS) architecture.
- Age Limit: Open to all Indian citizens aged between 18 and 40 years.
- Requirement: Must have a valid savings bank account or post office account for auto-debit of contributions.
- Tax Status: Since 1 October 2022, income taxpayers are not eligible to join the scheme.
Pension Benefits
- Guaranteed Payout: Provides a fixed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 starting from the age of 60.
- Spousal Security: Upon the subscriber's death, the same pension amount is guaranteed for life to the spouse.
- Nominee Benefit: If both the subscriber and spouse pass away, the entire accumulated corpus (pension wealth) is returned to the nominee.
Financial Structure
- Contribution Basis: The amount paid depends on the age of joining and the chosen pension slab. For example, an 18-year-old can secure a ₹1,000 pension for just ₹42 per month.
- Tax Advantages: Contributions qualify for tax benefits under Section 80CCD, similar to the National Pension System.
- Government Guarantee: If the actual investment returns are lower than the promised pension, the Central Government funds the viability gap.
