What is Atal pension yojana (APY)?

It is a social security scheme by the government for those working in the unorganised sector such as maids, drivers, construction workers and others. They can save money during their working years by investing in this pension scheme to secure their finances after they retire.

Who is eligible?

The following conditions must be met before investing in Atal Pension Yojana

  • You are an Indian citizen between 18 to 40 years of age
  • Your bank account is linked to Aadhar
  • You have a valid mobile number
  • You are ready to contribute regularly for the next 20 years
How to apply for an APY account
  • You can approach a nationalised bank or download the APY form from NSDL website. Forms are available in all major regional languages apart from Hindi and English
  • The filled form and a photocopy of Aadhar card needs to be submitted to the bank along with your mobile number
  • Once the application is approved, the account will be opened, and you can begin contributing.
How does Atal Pension Yojana work?

You contribute an amount every month as per the monthly pension that you expect to receive post-retirement as well as your age when you start contributing. You can choose from a fixed monthly pension amount of ₹ 1000, ₹2000, ₹3000, ₹4000 or ₹5000, that you will start getting once you reach 60 years of age.

Benefits of investing in Atal Pension Yojana
  • Contribution by the government: For those who had joined APY between June to December 2015, the government contributes 50% of the total amount ₹1000 yearly (whichever is lower) for 5 years until 2019-20

  • Flexibility: Apart from offering a guaranteed pension on retirement, those investing in Atal Pension Yojana can increase or decrease the amount of pension received as per their requirements.

  • Death benefit: If the subscriber dies, his or her spouse qualifies for pension till he or she is alive. However, if the contributor expires before 60 years of age, his or her spouse has the option to withdraw the entire pension amount accumulated and exit Atal Pension Yojana or continue contributing for the rest of the period. The spouse will enjoy the pension amount similar to the APY subscriber until his or her death in this case.