- ₹1,000 to ₹5,000Pension a month
- From 60For the rest of your life
- 18 to 40Age to join
- From ₹42Payment a month
What is Atal Pension Yojana?
Atal Pension Yojana (APY) is a pension scheme of the Government of India. It started in 2015 and is run by PFRDA, the pension regulator. It is meant for people who will not get a pension from their job, such as shop workers, drivers, house helpers, farm workers and small business owners.
- Step 1Pay until 60A small fixed amount, taken from your savings account.
- Step 2Pension from 60₹1,000 to ₹5,000 a month, for life.
- Step 3Then your spouseGets the same pension for life.
- Step 4Then your nomineeGets ₹1.7 L to ₹8.5 L.
Example: Sunita, 25. She joins APY for a ₹5,000 pension and pays every month until 60. After her, her husband gets the same pension. After both, their nominee gets the pension wealth.
- She pays a month
- ₹376
- For 35 years, in all
- ₹1,57,920
- Pension from 60
- ₹5,000/month
Atal Pension Yojana benefits
- Guaranteed pension: ₹1,000 to ₹5,000 a month from 60, for life. If the invested money earns less than needed, the government pays the difference.
- Pension for your spouse: after you, your husband or wife gets the same pension for life.
- Money for your family: after both of you, your nominee gets ₹1,70,000 to ₹8,50,000.
- Low, fixed payments: from ₹42 a month if you join at 18. The amount does not go up while you pay.
- Tax saving: in the old tax regime, contributions count for the NPS deduction (earlier Section 80CCD).
How much do you pay in Atal Pension Yojana?
Your payment depends on two things: the pension you choose, and your age when you join. For someone joining at 25:
| Pension from 60 | Pay a month (join at 25) | Nominee gets later |
|---|---|---|
| ₹1,000 | ₹76 | ₹1,70,000 |
| ₹2,000 | ₹151 | ₹3,40,000 |
| ₹3,000 | ₹226 | ₹5,10,000 |
| ₹4,000 | ₹301 | ₹6,80,000 |
| ₹5,000 | ₹376 | ₹8,50,000 |
For a ₹5,000 pension, by age at joining:
| Join at | Pay a month | Pay for | Total paid |
|---|---|---|---|
| 18 | ₹210 | 42 years | ₹1,05,840 |
| 25 | ₹376 | 35 years | ₹1,57,920 |
| 30 | ₹577 | 30 years | ₹2,07,720 |
| 35 | ₹902 | 25 years | ₹2,70,600 |
| 40 | ₹1,454 | 20 years | ₹3,48,960 |
Joining early costs less. Sunita pays ₹376 a month by joining at 25; at 35 the same pension would cost ₹902 a month. See every age from 18 to 40 in the APY chart and calculator.
Atal Pension Yojana eligibility
- Yes: Indian citizens aged 18 to 40
- Yes: With a savings account in a bank or post office
- Yes: Workers in shops, homes, farms, transport and small businesses
- Yes: Housewives and students who meet the above
- No: Anyone who is or has been an income-tax payer (from 1 October 2022)
- No: People older than 40
- No: A second APY account for the same person
If an income-tax payer joined by mistake after 1 October 2022, the account is closed and the money saved is returned.
How to apply for Atal Pension Yojana
- Step 1At your bank or post officeWhere you have your savings account.
- Step 2Fill in the APY formAccount number, age, pension amount, spouse and nominee.
- Step 3Give Aadhaar and mobileFor KYC and payment alerts.
- Step 4Keep money in the accountThe first payment is taken straight away.
- Step 5Get your PRANYour Permanent Retirement Account Number.
- Step 6Or apply onlineMany banks offer APY in net banking or their app.
Paying for APY: how often and missed payments
The bank takes the payment from your savings account automatically. For Sunita's ₹5,000 pension:
| How often | Each payment |
|---|---|
| Monthly | ₹376 |
| Every 3 months | ₹1,136 |
| Every 6 months | ₹2,294 |
- Keep enough balance in your account on the due date.
- A missed payment is collected later with an overdue charge of ₹1 a month for every ₹100. For Sunita, that is ₹4 for each month of delay.
- You can change the pension amount once a year, usually in April. Your payment changes with it.
Atal Pension Yojana exit and death rules
- Step 1At 60Your monthly pension starts and continues for life.
- Step 2Leaving before 60You get back your own payments with the income earned on them, after charges. No guaranteed pension.
- Step 3Death before 60Your spouse can keep paying and get the same pension later, or close the account and take the money saved.
- Step 4Death after 60Your spouse gets the same pension for life. After both, the nominee gets the pension wealth.
Atal Pension Yojana tax benefits
- DeductionOn your paymentsOld regime, NPS deduction (earlier 80CCD)
- TaxablePension from 60Added to your income
- No deductionIn the new tax regime
Atal Pension Yojana: strengths and limits
- Yes: Pension guaranteed by the government
- Yes: Spouse and nominee are covered
- Yes: Small, fixed payments
- Yes: Easy to join at your bank
- No: Pension capped at ₹5,000 a month
- No: Fixed pension does not rise with prices
- No: Not for income-tax payers
- No: Joining is closed after 40
APY or NPS?
| Atal Pension Yojana | NPS | |
|---|---|---|
| Pension | Fixed, ₹1,000 to ₹5,000 | Depends on your savings and markets |
| Who can join | 18 to 40, not tax payers | 18 to 85, including tax payers |
| Payment | Fixed by the chart | Any amount you choose |
| Guarantee | Yes, by the government | No |
Compare your numbers on the NPS calculator.
Frequently asked questions
What is Atal Pension Yojana?
Atal Pension Yojana (APY) is a pension scheme of the Government of India, run by PFRDA. You pay a small fixed amount until you are 60. Then you get a pension of ₹1,000 to ₹5,000 a month for life. The government guarantees this pension.
Who is eligible for Atal Pension Yojana?
Indian citizens aged 18 to 40 with a savings account in a bank or post office. From 1 October 2022, anyone who is or has been an income-tax payer cannot join.
How much do I pay for a ₹5,000 pension?
It depends on your age when you join: ₹210 a month at 18, ₹376 at 25, ₹577 at 30, ₹902 at 35 and ₹1,454 at 40. The amount stays the same until 60.
How can I apply for Atal Pension Yojana online?
Many banks let you join APY through net banking or their mobile app. Log in, look for Atal Pension Yojana under investments or social security schemes, choose your pension and payment frequency, and confirm. You can also fill in the APY form at your bank or post office branch.
Can a housewife or a student join APY?
Yes, if they are an Indian citizen aged 18 to 40, have a savings account, and have never paid income tax. The payment is taken from that savings account.
What happens to APY if the subscriber dies?
If you die after 60, your spouse gets the same pension for life, and after the spouse your nominee gets the pension wealth. If you die before 60, your spouse can keep paying until you would have turned 60 and then get the same pension, or close the account and take the money saved.
Can I leave Atal Pension Yojana before 60?
Yes. You get back your own contributions with the actual income earned on them, after charges. You do not get the guaranteed pension.
What if I miss an APY payment?
The bank collects the missed amount later with an overdue charge of ₹1 a month for every ₹100. Keep enough balance in your savings account on the due date.
Can I change my APY pension amount?
Yes. You can move to a higher or lower pension once a year, usually in April. Your payment changes to match the new pension.
Is there any tax benefit in APY?
Yes, in the old tax regime only. Your APY contributions count for the NPS deduction (earlier Section 80CCD of the Income-tax Act). The pension you get later is taxable as income.