Atal Pension Yojana (APY) is a government-backed pension scheme in India designed mainly for workers in the unorganised sector. It helps individuals build a regular income for retirement.

Under APY, you contribute a fixed amount regularly (monthly/quarterly), and in return, you receive a guaranteed monthly pension after the age of 60. The pension options range from ₹1,000 to ₹5,000 per month, depending on your contribution and the age at which you join.

Key points:

• Open to individuals aged 18 to 40 years
• Minimum contribution period: 20 years
• Pension is guaranteed by the government
• After the subscriber’s death, the spouse continues to receive the pension
• After both pass away, the corpus is returned to the nominee

The earlier you join, the lower your contribution for the same pension amount.

Ramesh, a 30-year-old employee, joins APY and chooses a pension of ₹5,000 per month after retirement. Based on his age, he contributes around ₹577 per month.

He continues investing till age 60. After retirement, he receives ₹5,000 every month for life. After his death, his spouse continues to receive the same pension. After both pass away, their nominee receives the accumulated corpus of around ₹8.5 lakh.

• 2015 – Launch of APY
Introduced by the Government of India as part of its financial inclusion initiative.

• Replaced Swavalamban Yojana
APY replaced the earlier scheme by offering defined and guaranteed pension benefits.

• Growth in Adoption
The scheme has seen strong adoption, especially among low-income and informal sector workers, with millions of subscribers across India.

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