Winning Bizness Desk

Mumbai.Launched on May 9, 2015, by Prime Minister Narendra Modi, the Atal Pension Yojana (APY) has completed a decade, providing financial security to workers in India's unorganised sector. Administered by the Pension Fund Regulatory and Development Authority (PFRDA), APY offers subscribers a guaranteed monthly pension ranging from ₹1,000 to ₹5,000 upon reaching 60 years of age. This initiative aims to address the lack of formal pension provisions for individuals in the unorganised workforce.

Eligibility and Contributions

APY is open to Indian citizens aged between 18 and 40 years. Subscribers must contribute for a minimum of 20 years. The contribution amount varies based on the subscriber's age at entry and the desired pension amount. For instance, an 18-year-old aiming for a ₹5,000 monthly pension would contribute ₹210 monthly, whereas a 40-year-old would need to contribute ₹1,454 monthly. Paisabazaar

Flexible Payment Options

Subscribers can choose to make contributions on a monthly, quarterly, or half-yearly basis, with payments auto-debited from their savings accounts. This flexibility accommodates varying income patterns, especially for those in the unorganised sector. However, it's crucial to maintain sufficient account balance to avoid penalties, which range from ₹1 to ₹10 per month, depending on the contribution amount.

Benefits for Spouse and Nominee

In the event of the subscriber's demise, the spouse is entitled to receive the same pension amount. If both the subscriber and spouse pass away, the accumulated pension corpus is returned to the nominee. This ensures continued financial support for the family members. SBI Life Insurance

Exclusion of Taxpayers

As of October 1, 2022, individuals who are income taxpayers are ineligible to enroll in APY. This measure ensures that the scheme benefits those who lack access to other formal pension systems.

Enrollment Milestones

APY has witnessed significant growth, with over 7 crore enrollments to date. In the financial year 2024-25 alone, more than 56 lakh individuals joined the scheme, highlighting its widespread acceptance and the pressing need for retirement security among the unorganised workforce.

APY Monthly Contribution Chart (₹)