The Atal Pension Yojana is a social security scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System (NPS). April 2025, the Atal Pension Yojana (APY), a retirement savings scheme for the unorganised sector, has achieved a significant milestone by enrolling over 7.65 crore subscribers. It has also accumulated a total corpus of Rs 45,974.67 crore. The scheme was launched in 2015, and has worked with the aim to provide financial security to workers in the informal sector who often lack access to formal pension systems.
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Key Features of APY:
Guaranteed Pension
The Atal Pension Yojana is a retirement scheme designed for low-income individuals, especially those in the informal sector or rural areas without formal retirement benefits like the Employees' Provident Fund. However, APY is not suitable for market-linked returns or employer-backed pension plans.
Spouse and Nominee Benefits
The Atal Pension Yojana provides a monthly pension to subscribers, which is credited to their account after the subscriber's 60th birthday. The subscriber's spouse receives the same pension amount until their death, and the accumulated pension corpus remains the same as when the subscriber turns 60. This scheme ensures continued financial support for the family.
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Flexible Contribution
The Atal Pension Yojana offers different levels of frequency of contributions such as monthly, quarterly, or half-yearly contributions. The contributions can be made through auto-payment mode from the subscriber's savings or post office accounts. The amount that an accountholder contributes depends upon that individual's age as well as their pension amount. Payments can be made anytime within the due period, which is your chosen frequency, such as anytime in the month for monthly contributions or during the first month of the period for quarterly or half-yearly payments.
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Inclusivity
India's Atal Pension Yojana (APY), the country's largest retirement savings scheme for the unorganised sector, has reached a significant milestone with over 7.65 crore subscribers and a total corpus of Rs 45,974.67 crore as of April 2025, with women now accounting for 48% of the total subscriber base.
Payment Defaults
If you miss payments for Atal Pension Yojana, your account will be considered a default if there isn't enough balance by the due date. The missed payments can be deducted later with a small penalty of Rs 1 per Rs 100 contribution per month. The said penalties are added to your corpus. In case of multiple missed payments, the amount can only be retrieved once it gains enough funds. Account maintenance charges apply.
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Target Audience
APY is particularly beneficial for individuals in the unorganised sector without access to formal pension schemes. The growing popularity of APY underscores its role in enhancing financial inclusion and providing a safety net for India's ageing population, especially those in the informal workforce.
