Atal Pension Yojana (APY)

Atal Pension Yojana (APY)

Atal Pension Yojana (APY) is a guaranteed pension scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Key Features and Benefits:

• Guaranteed Pension: Subscribers receive a fixed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 upon reaching the age of 60, depending on their contribution level.
• Spousal & Nominee Benefits: In the event of the subscriber's death, the same pension is paid to the spouse for life. After the death of both, the accumulated corpus (ranging from ₹1.7 lakh to ₹8.5 lakh) is returned to the nominee.
• Government Guarantee: If the actual returns on investment are lower than estimated, the Central Government funds the shortfall to ensure the guaranteed minimum pension.
• Tax Benefits: Contributions are eligible for tax deductions under Section 80CCD(1) of the Income Tax Act.
• Flexible Contributions: Payments can be made monthly, quarterly, or half-yearly via auto-debit from a linked savings account. 

Eligibility Criteria:

• Age Limit: Minimum entry age is 18 years and maximum is 40 years.
• Bank Account: A functional savings bank account account is mandatory.
• Income Tax Status: Since October 1, 2022, any citizen who is or has been an income taxpayer is ineligible to join the scheme. 

Contribution Chart (Sample Monthly Premiums):

The contribution amount depends on your age at entry and the desired pension amount. 

How to Apply?

• Enrollment: Can be done at any bank branch or post office. Digital onboarding is available via the e-APY portal or bank net banking using Aadhaar-based KYC.
• Upgrades/Downgrades: Subscribers can increase or decrease their pension slab once per financial year (typically in April).