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Atal Pension Yojana - Know APY Scheme Eligibility, Features & Benefits
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A detailed guide on Atal Pension Yojana

Planning life after retirement is not an easy one because it requires enough funds to see you through your financial needs. Those who want to plan well for a retired life should choose a pension plan offered by public and private insurance companies that will help accomplish their financial objective to a great extent. But like any investment, one should evaluate all the features of the policy as they may vary from one insurer to another. 

The Indian government today offers different types of pension schemes for economically weaker sections of society. Atal Pension Yojana is one of them which offers substantial benefits when a person retires after 60 years. The plan is mainly designed for those who work in unorganized sectors. It is a replacement for the Swavalamban Yojana, with the introduction of more advantages for the buyers. This scheme is from the Government of India and is suitable for those who don’t come under any social security scheme. 

What is the APY Scheme?

It is a social security scheme initiated by the Government of India which aims at increasing income after the age of 60. The scheme is suitable for those who work as delivery boys, maids, drivers, gardeners, etc. In other words, the objective of the scheme is to satisfy the requirements of low-income people who don’t work in organized sectors. 

The plan gives ways to get protection from chronic illnesses, accidents, and other problems that can affect the life of a person. Another thing is that it provides a way to enhance financial stability effectively. The scheme is also perfect for employees working in private companies who don’t have any pension benefits. 

A beneficiary of the APY will receive his/her corpus accumulated corpus in the form of monthly payments.  However, a beneficiary’s nominee or spouse will receive the pension benefit in a lump amount in case of death. 

Atal Pension Yojana - Know APY Scheme Eligibility, Features & Benefits

Atal Pension Yojana Information

Pension Amount Up to Rs.5,000
Age Limit Minimum 18 Years and Maximum 40 Years
Contribution Period Minimum 20 Years
Exit Age 60 Years

6 Top Features of the Atal Pension Yojana (APY) Scheme

  1. Automatic Debit
  2. Facility to Increase Contributions
  3. Guaranteed Pension Amount
  4. Monthly Contribution
  5. Tax Exemptions
  6. Withdrawal Process


1. Automatic Debit

One of the main benefits of the Atal Pension Yojana scheme is that it offers an automatic debit facility. Thus, a subscriber should have a valid bank account for linking the scheme. And the buyer should have enough funds while the amount is being debited.

2. Facility to Increase Contributions

The scheme offers different types of contributions which in turn increase the pension amount significantly. To facilitate increased financial stability, the Government of India provides methods to increase and decrease the contributions of a person once a year to change the corpus amount. 

3. Guaranteed Pension Amount

The Atal Pension Yojana scheme offers a periodic pension amount starting from Rs.1000 upto Rs. 5000 based on the contribution.  A subscriber can choose the pension amount that best meets their requirements and accordingly make the monthly contribution.

4. Monthly Contribution

The scheme will determine the monthly contribution amount based on the age of a subscriber. For example, the monthly contribution at the age of 18 years is between Rs.42 and Rs. 210 per month. The minimum duration of contribution under this scheme is 20 years that will help generate more income. 

5. Tax Exemptions

Tax exemptions are available for subscribers under the income tax act 1961. It is advisable to check the tax benefits under 80CCD (1) with attention before opening an account. 

6. Withdrawal Process

A subscriber will get a full pension after 60 years and he/she must go to the bank and apply for the same. The scheme allows a subscriber to exit during illness or death. It allows a subscriber’s spouse to receive the pension when he/she dies before the age of 60.

Eligibility for Atal Pension Yojana Scheme

Know the Atal Pension Yojana eligibility before applying for the scheme –

  • The scheme is available for only Indian citizens whose age range between 18-40 years
  • A subscriber should have a valid bank account linked with his/her Aadhaar card
  • The subscribers are not a beneficiary under any welfare scheme 
  • A valid mobile number and Aadhaar card


Atal Pension Yojana (APY) Contribution Chart (Age wise)

Age of Entry Years of  Contribution Monthly pension of Rs. 1000 and Indicative return of corpus to the nominee of Rs1.7 Lakh. Monthly pension of Rs. 2000 and indicative return of corpus to the nominee of Rs.3.4 Lakh. Monthly pension of Rs. 3000 and indicative return of corpus to the nominee of Rs.5.1 Lakh. Monthly pension of Rs. 4000 and indicative return of corpus to the nominee of Rs.6.8 Lakh. Monthly pension of Rs. 5000 and indicative return of corpus to the nominee of Rs.8.5 Lakh.
18 42 42 84 126 168 210
19 41 46 92 138 183 228
20 40 50 100 150 198 248
21 39 54 108 162 215 269
22 38 59 117 177 234 292
23 37 64 127 192 254 318
24 36 70 139 208 277 346
25 35 76 151 226 301 376
26 34 82 164 246 327 409
27 33 90 178 268 356 446
28 32 97 194 292 388 485
29 31 106 212 318 423 529
30 30 116 231 347 462 577
31 29 126 252 379 504 630
32 28 138 276 414 551 689
33 27 151 302 453 602 752
34 26 165 330 495 659 824
35 25 181 362 543 722 902
36 24 198 396 594 792 990
37 23 218 436 654 870 1087
38 22 240 480 720 957 1196
39 21 264 528 792 1054 1318
40 20 291 582 873 1164 1454

How to apply for the APY Scheme?

A subscriber can open the APY scheme in a post office or bank where they have a savings account. He/she can also download an application form online from the official website of participating banks or Pension Fund Regulatory and Development Authority (PFRDA). It is important to fill the application form properly while opening an account. One should also choose the pension scheme based on his/her choices after knowing complete details. 

What are the benefits of the Atal Pension Yojana (APY Scheme)?

  • An individual can ensure a steady source of income after reaching 60 years
  • It is a risk-free scheme available from the Government of India that will help overcome the financial burden significantly
  • A subscriber can appoint a nominee who can receive the whole corpus amount 
  • The scheme has penalty charges and a subscriber should know more about them in detail 
  • It allows subscribers to receive a fixed pension of Rs. 1000, Rs.2000, Rs.3000, Rs.4000, and Rs. 5000 once they reach 60 years of age
  • The scheme allows a spouse to claim the contributions or complete the duration in case of a subscriber’s death



The APY scheme is an excellent plan introduced by the Government of India to ensure financial security in life for those who work in unorganized sectors and have low incomes. EPF subscribers are also eligible for this scheme. Apart from that, the scheme provides ways to increase or decrease the contributions once a year depending on the requirements. A subscriber should know the APY scheme details well before investing money. Planning for retirement especially in terms of financial needs should become a priority for all of us and evaluating the various schemes available in the market to choose the one that best fits our needs surely gives peace of mind.

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