20 Features of Atal pension Yojana

Atal pension yojana (APY) is one of the highly acclaimed social security scheme launched by Govt of India during budget 2015. Out of many, APY is the only pension scheme to secure & provide a defined pension on retirement.

On 6th of May, Prime Minister, Shri Narendra Modi as a part of the Union Cabinet has approved the operation of all the three social security schemes Atal Pension Yojna (APY), Suraksha Bima Yojana (PMSBY) & Jeevan Jyoti Bima Yojana (PMJJBY).

The Cabinet also approved extend funding support to implement the Atal Pension Yojana scheme. Government will also provide Rs. 50 crore per annum for the next 5 years to PMJJBY and PMSBY as a contribution to create an awareness.

In this article we will discuss about atal pension yojana details and key highlights. One can read the official details in Hindi or English also. Let us check out all the 20 features of atal pension yojana here.

Atal Pension Yojana – Key Features

The name of this scheme was decided as per our former honorable PM Atal Bihari Vajpayee. Govt is trying to cover people in unorganized sector who are not going to get any pension in future. FM Arun Jaitley is stressing much for pension schemes during budget 2015 to improve social security after 60+ age for senior citizens. It could be a good scheme which will provide social security when someone retires.

Don’t Miss PM launched Jeevan Jyoti Bima Yojana Insurance plan for poor people

1. Benefits of the Scheme: APY is a guaranteed pension scheme from Govt of India. Depending on the contribution level, this scheme will provide a fixed pension to the poor unorganized sector of people. The Atal Pension scheme will be focussed towards every India citizen under the National Pension System (NPS).

Atal pension yojana (APY)

2. Migration from Swavalamban Scheme: If you have subscribed to Swavalamban Scheme, then you will be automatically migrated to atal pension yojana (APY).

If any subscriber beyond the age of 40 under Swavalamban scheme do not wish to continue can opt out of the scheme. They can either completely withdraw the entire amount, or to be eligible for annuities there under, may continue till the age of 60 years .

3. Eligibility: All Indian citizen within the given age limit is eligible to avail the APY scheme provided they have a savings bank account.

4. Age Limit: The entry age for this scheme will be 18-40 years. The pension will be started from the age of 60 years. That means min duration of contribution will be 20 years.

Pension Amount, Due Date & Payment Mode

5. Amount of Pension: Monthly pension amount will vary from 1000 – 5000 as per one’s contribution.

6. Changing Pension Amount: If the subscriber wants, he/she can opt to increase/decrease the pension amount as per the available monthly pension amounts. The switching option will be available once in a year during the month of April.

7. Due Date of Contribution: In Atal pension scheme, the due date for monthly contribution will be decided as per the initial date of deposit of the amount. After joining the scheme, the subscriber will receive an acknowledgement slip which will be the record for the due date of contribution, guaranteed pension amount, Permanent Retirement Account Number (PRAN) etc.

8. Payment Mode: The payment method for Atal Pension Yojana is also direct auto-debit like PM Suraksha Bima Yojana & PM Jeevan Jyoti Bima Yojana. To ensure that no penalty is levied, the subscriber must keep a track that sufficient balance is maintained in the account.

9. Contribution Period: The minimum period of contribution is 20 years & the maximum period of contribution is 42 years. The contribution period depends on the age of joining.

10. Where to Enrol: All points of presence (service providers) & aggregators under Swavlamban Scheme will enrol for the APY scheme by setting up National Pension System.

Atal pension yojana (APY) Contribution Level

11. Minimum Contribution Limit – As per the age of joining, the contribution amount will vary. The subscribers will start getting the pension from the age of 60 years. An 18 years old subscriber needs to contribute a minimum of Rs. 42 per month to get a monthly pension amount of Rs. 1,000. Similarly, for a 40 years old subscriber, minimum contribution amount is Rs. 291 per month.

12. Maximum Contribution Limit – If someone of age 40 years, started contributing for atal pension yojana (APY) scheme he/she has to pay a monthly contribution of 1454 for 20 years. After 20 years he/she will get guaranteed Rs 5000 / month pension.

You can see the exact calculation of contribution amount in the detailed article on Atal Pension Yojana Calculator.

13. Nomination Facility: Nomination is mandatory under APY scheme. One needs to provide nominee details while opening the account. Also wherever applicable the spouse details with Aadhaar card no. should be provided.

Govt. Contribution & Operational Authority

14. Contribution by Government – Govt. will also co-contribute 50% of the subscriber’s contribution or Rs 1,000 per annum, whichever is lower. This facility will be provided to people who open atal pension yojana (APY) before December 31st, 2015. The Government will co-contribute to the eligible Permanent Retirement Account Number (PRAN) holders by PFRDA after receiving the confirmation from Central Record Keeping Agency.

To encourage people to join the APY scheme, Govt. will also reimburse the promotional and development activities including incentive to the agencies who will collect the contribution amount.

15. Operational Authority: APY is a Government of India Scheme. It will be administered by PFRDA (Pension Fund Regulatory and Development Authority). PFRDA will originate the account opening form along with the offer document of this scheme.

Penalty for Default & False Declaration

16. False Declaration:  While opening the account, if any false declaration is made about the person’s eligibility, entire government contribution along with the penal interest will be forfeited.

17. Penalty for Default: Penalty will be levied for defaulters. The account may get foreclosed in case of repeated defaults for a specified period.  Govt. co-contributions will also be forfeited.
For any delayed payments, the respective banks need to collect the additional amount. Below is the different variations per month for this amount:

  • Rs. 1 for contribution upto Rs. 100 per month
  • Rs. 2 for contribution upto Rs. 101 to 500/- per month
  • Rs. 5 for contribution between Rs 501/- to 1000/- per month
  • Rs. 10 for contribution beyond Rs 1001/- per month.

18. Discontinuation Effect: If discontinuation of payment happens for a specified period of time, it may lead to even closure of the account. The other effects of non-contribution of amount are:

  • After 6 months – Account will be frozen
  • After 12 months – Account will be deactivated
  • After 24 months – Account will be closed

Other Details of APY

19. Information Alert: While making the subscription, one needs to provide his/her mobile no. So the subscriber will receive periodical information on the auto-debit of the account, balance amount, contribution credits etc. through SMS alerts.

20. Exit Atal pension yojana:

After completion of 60 years: To draw the guaranteed monthly pension, the subscriber needs to submit the request to the respective bank. In case of unfortunate death of the subscriber, spouse will receive the amount.

Exit before 60 years: Exit before the age of 60 years is not permitted. Exceptions can happen only in extreme situations like in the event of the death of beneficiary or terminal disease.

Do you think Rs 5000 per month will be enough after 20 years? Forget about being enough, I am not sure how much value Rs 5000 will have by that time. In that case how atal pension yojana (APY) will secure our society by providing pension? But definitely it is a stepping stone towards the social security of the unorganised sector. Anyway we have to wait to know more about this scheme in coming days.

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  1. My age is 35. Can I stop & withdraw the amount after 10- 15 years. If I die at the age of 50 will nominne have to continue paying. Any Lum sum amount nominee will they get at that time. How long pension will remain continue for nominee?? Reply

  2. Hi Manidipa,


    My question is if any passbook or statement or any tracking site for Track our Deposited funds for APY. There should be any tracking system for looking the transaction.

  3. Dear sir,

    I am Bhaskar MB my age is 32 years, I planned to 5000 Rs pension per month after 60 Years, If i death Before 60 years The pension will move to my spouse, Suppose after death of my spouse before 60 years or After 60 years, Is it transfer Lumpsum amount 8.5 lakh to My daughter or son. and Is there any Bond or agreement with this scheme for whole details,

    Please suggest details

  4. How can i change nominee
    How can correct mistakes in name entry
    How can I upgrade premium from 2000 to 5000 scheme

  5. As per illustration Ram will get RS 5000 pension per month .But after 30yrs what will be the value of RS. Rs 5000. According to me the lump Sump amount should be given to Ram and RS 5000 pension throughout his life and after him the pension should given to his wife .
    This will be the right decision . The nominee don’t have any right to get lump sump .
    The money deposited in Apy belongs to Ram he will be the genuine person to get the return .

  6. My question is…. In Atal pension yojana – what happened if subscriber is DEATH before 60 year…. How much benefit get his nominee… Any fixed amount or only pension. Please….. Clear it…. No buddy knows it.

      1. What the beneficiary will get if he/she die before 60 if I choose the pension of Rs. 5000??
        All premium paid
        All premium with Interest
        8.5 lac

  7. If subscriber will die during this scheme then his spouse will get pension or nothing?it’s my question so please give me answer .

  8. Sir,any hard copy or passbook given by bank or not.if not then at retired time maybe some problem faces by us, so please discuss with govt in this matter and take necessary action for better transparent to the scheme.
    Thank you

  9. Hi,,,

    My age is 30 and my wife is 25

    We have applied “Atal Pension Yojana”(5000 per month) for both me & Wife..amount has been deducting for both like below

    376/- ruppes for my wife , I need to pay for 35 years

    577/- for me,I need to pay for 30 years

    i have a below questions, could u please clarify

    1) I am thinking that ..unnecessarly i have taken policy for my wife because i already have APY

    2) Is It good have a APY for both me & Wife, For one person in famaily will have a pension is sufficient right?

    3) Instead of paying amount 4512 yearly upto 35 years for my wife, i could have taken some other insurance policy for 15 years .

    Please suggest me,

    whether it is good to invest money in APY for both me & wife?


    Can i cancel APY for my wife and i will apply NPS for me ..Is it Good?

    Please suggest me Is it good have pension plan?

    1. Now a days average human life time 50years its will not benefits all the people who put the pension scheme people because after age 0f 60 only will get benefit so not sure about human will live up to 60 and above. I think its not use pls suggest me

  10. Hi
    I am Narendra, I enrolled this APY scheme for me & I want to know how to take this scheme to my spouse ?
    How many Nominees we need to mention while applying (wife and mother)?

  11. For the people paying tax and enroll in APY plan, Government wont be contributing anything in the account.
    How will this affect the pension amount or the corpus amount.


  12. Hi Manidipa,

    Thanks for the nice blog.

    For the people paying tax and enroll in APY plan, Government wont be contributing anything in the account.
    How will this affect the pension amount or the corpus amount.

    Can you please clarify.

    Thanks in advance 🙂

  13. Hi mam,

    I have already joined the Atal pension scheme for a pension amount of rs. 5000 and my first payment got deducted and received the sms.

    Am 25 years old unmarried, so appointed my mom as the nominee.

    My questions are

    1. Can I replace the nominee in future?
    2. In case of my death before maturity ex 60 years, what would be the benefit to my family?
    3. When would be the corpus amount paid?
    4. I have got a account no, do I have any option to check my account details?

    Thank you….

  14. If i die before age of 60 yrs will my spouse get the benefit of this scheme…i.e will she get the pension amount after my projected age of 60 yrs.??

  15. Hi Manidipa,

    Can spouse be the nominee too?, if in case of death before of after 60 will the nominee get the pension or lumpsum?

  16. I am very much interested in joining APY. But I am over 40 yrs . Bad luck for me.
    Is there any way I can still join it ?
    For a pension of 5000rs/month I am ready to pay more as well as I am ready to pay 348000rs as one time investment . Is this possible?
    Please advice. Thanks.

    1. You May put your wife under APY if she is younger than 40 years.Also you can put an monthly interest FD and divert that interest earned into the APY scheme.

    2. Kamal,

      Why do you want to go for the Atal pension scheme? Let us say you are 50 years old. Put your 348000 in fixed deposit. Even at 8.5% interest compounded annually this will become 786822 when you are 60 and let us say that the interest rate at that time is 8%, you will be senior citizen then so you will get 8.5%. Now, you can keep this money in fixed deposit and you will get interest of 5573 a month which will be 5016 per month after TDS, and your money remains in fixed deposit! What benefit then is there of the Atal pension scheme? This question is for Manidipa as well!

  17. Hi
    I am 28 years old and I am interested in APY scheme.
    please tell me how much amount i need to contribute to get 4000Rs pension for month after 60 years?


    1. Kamal,

      Why do you want to go for the Atal pension scheme? Let us say you are 50 years old. Put your 348000 in fixed deposit. Even at 8.5% interest compounded annually this will become 786822 when you are 60 and let us say that the interest rate at that time is 8%, you will be senior citizen then so you will get 8.5%. Now, you can keep this money in fixed deposit and you will get interest of 5573 a month which will be 5016 per month after TDS, and your money remains in fixed deposit! What benefit then is there of the Atal pension scheme? This question is for Manidipa as well!

    2. Ashwin,

      You would be better off putting the money in recurring deposit in any bank! Look at the comment of Durvendra Kushwa below and my reply to him!

      Priyedarshi Jetli

  18. Thanks a lot for nice information. I have one doubt in the case of subscriber death will his/her nominee get the pension or not?. Will it contains same amount or any difference?

    Thanks for your reply!!

    1. Spouse will continue get the pension (same pension amount).
      However on death of both Subscriber and spouse Nominee will get indicative “return of corpus” which is based on pension slab(1.7 lakhs for 1000, 3.4 lak for 2000, 5.1 lakh for 3000, 6.8 lakh for 4000 and 8.5 lak for 5000 pensions respectively)

  19. how long pension i can get after 60 years… if I am enrolling at age of 38 years opting for 5000/month and paying the amount for that.

  20. Thanks Manidipa for your information. I have one query, what is last date to apply APY scheme??

    1. Hi Yogesh,

      Thanks for liking our efforts.

      The last date to apply Atal Pension Yojana to avail Govt. contribution is 31st December, 2015.

      1. For the people paying tax and enroll in APY plan, Government wont be contributing anything in the account.
        How will this affect the pension amount or the corpus amount.


  21. Hello Team,

    I am a Software employee and I will pay the Income Tax. Am I eligible for enrolling my self under Atal Pension Scheme? Please clarify.

    Thanks and Regards,

      1. Hi,

        Thanks for the sharing this important information.

        If person is tax payer and he will not get the govt. contribution then will that impact on the corpus amount?
        What will be the interest rate for this?

        Thanks in advance.

  22. If I start the scheme and after few years if I unable to continue then should I get back the deposited amount with interest & how, please reply.

    1. Hi Kusum,

      Discontinuation before 60 years is not permitted. Only in extreme situations like in the event of the death of beneficiary or terminal disease exceptions may happen.

  23. Thanks for the post.

    I have PF and also have LIC, does that make me ineligible for this scheme?


    1. Hi Sanjeev,

      Thanks that you found this article useful.

      Any Indian citizen within the age group of 18-40 years are eligible for the APY scheme. Those who are not covered under any statutory Social Security Schemes and are not income tax payers can also avail the Govt. contribution.

  24. Hi Manidipa
    Thanks for ur inf on atal pension scheme. But I wish to know if someone who already has an LIC endowment policy could join this scheme. I am 26yrs old and waiting for psc recruitment. What if I get a govt job after I joined atal pension. ?
    Will I be eligible then? If no, will I get the amt paid?

  25. i have confusion about APY Scheme i am now 28 year i enrolled for 5000 per month pension the i will have to invest 529/- rs monthly emi, means when i will be 60 year i pay rs 203136/- rs to APY. and i will not get any maturity amount after completion 60 year and will get only pension 5000/- monthly can you tell me this deal is good for me or not because if i invest in RD for 32 year and invest 529 as montly basis i will get 10,00,000/- and above then we can say that RD is most beneficial than APY.

    1. Durvendra,

      Very good point. You are absolutely right. If you pay for 32 years the future value of your 529 a month will become approximately 10,55,000 at 8.5% interest which you can easily get right now. So, if you can deposit instead in a RD, you will have over 10 lacs when you are 60. Suppose the interest rate then is 8% as senior citizen you will get 8.5% This will be 7,477 a month. And in case the Atal pension scheme is tax free as it probably is you would still get 6729 a month after TDS and you may get tax refund depending on your total income. Additionally, your 10,55,000 stays put in your fixed deposit the rest of your life. So, definitely the Atal pension scheme is a bad deal. Now, the government does pay for the first five years but only a maximum of 1000 a year for a maximum of 5,000 for five years. This hardly is a drop in the ocean. And putting it in RD is a much better deal.

  26. Hi……

    Nice efforts and very useful information.

    I am having a small query, I’ll enter at the age of 34 and I died around 45 what will be the next process ? My monthly subscription will be discontinued and Pension will start with immediate eeffect to my spouse ? As my subscription is for nearly 11 years corpous funds will remain same ?

    1. Hi Vipul,

      Thanks that you liked our efforts.

      If you die at the age of 45 years, your nominee will get your deposited amount with interest earned on it. i.e. if you have subscribed for a monthly pension of Rs. 5000, your nominee will get Rs. 824 * 12 months * 11 years = Rs. 1,08,768 + interest earned.

  27. If I complete payment till 60 year age. Will I be getting the invested amount back? Will pension be given after returning my invested amount?

    1. Hi Sushil,

      You can get only the pension amount. In case both the subscriber & his/her spouse die,tThe corpus amount will be given to the nominee.

  28. I am already enrolled under NPS which is covered under 80 CCD (1B) & have PRAN card. In addition to this can I enroll in Atal pension yogna.

    1. Hi Sanjay,

      Every Indian citizen is eligible for this scheme. But if you are covered under any social security scheme, then you will not be eligible for the government contribution.

  29. I have a query regarding the early death of the subscriber. If the subscriber dies before the age of 60, say 55 years, then do the spouse continue to pay the premium till the supposed 60th year of the death spouse or the spouse will receive the lump sum corpus? will the spouse still be eligible for the pension?

  30. Is that we get only monthly pension after 60 year age or some amount which I deposited plus monthly pension? If it’s that, then how much amount I’ll get?
    how many years it will go on …is it life time or is there any time limit when it will stop?
    Where we enroll for this scheme? Because there is no forum of scheme in any bank Till 1st June 2015. There is only PM Suraksha Bima Yojana and PM Jeevan jyoti Bima Yojana forum.
    what is the starting date of thus scheme?
    Please let me know the answers of these.

  31. I have one ppf account & My company cut off from my salary for pf purpose. So I can open APY.

  32. 1.Agar 60 year tak jama kiya and 62 year me expayar ho gaya to kya nomini ko 8.5 lakh bhi milega and pension bhi milega.
    2.agar 27 year me jama karna start kiya and 55 year ke pas expayar ho gaya to nomini ko kya milega 8.5 lakh ya 5000 pension ya dono.

  33. Hi
    I am 28 years old and I am interested in APY scheme.
    please tell me how much amount we paid for 1000 PM pension and time period.
    In between the time period if policy holder died than nominee got the benefits?
    Only pension or other amount?

    Please inform me …..

    1. Hi Ajay,

      To get a monthly pension of Rs.1000, contribution amount for your age is Rs. 97.
      If the subscriber dies, his/her spouse will get the pension amount. In case of death of both of them, the nominee will get the corpus accumulated.

  34. Dear Manidipa,
    Nice effort!
    I went through your blog and also went through Jansuraksha website. I have a strange question.
    If I have two bank accounts, can I open two APY and invest? Or one bank account and one pension account?

    1. Hi Subramanian,

      Thanks for liking our effort.
      In any case, someone can open only one account under the Atal Pension Yojana scheme.

  35. Thanks Manidipa for your information. I have one query. for example if i choose and pay regular EMI of 5000 scheme. then after 60 years how many years i or my spouse will get 5000/ month. secondly what is your personal opinion about this scheme? which type of people should buy this scheme? I am thinking to start it for my wife…once again thanks for blogging..

    1. Hi Manthan,

      After 60 years you will receive the payment till you are alive and then the spouse can get the pension amount. In case both are dead, the corpus amount will be given to his/her nominee.
      This scheme is mainly targeted for the unorganised sector of people but anyone can opt for this scheme provided they fulfil all the requisites.
      Thanks Manthan that you liked our effort.

    1. Hi Jyoti,

      Any Indian citizen within the age of 18 to 40 years can join the APY scheme. There is no limit on how many members in the family can join this scheme.

  36. Sir,

    Now I am 53 year old can i start this pension scheme, presently i am working in dubai , if I can start please send your details brochure and other details.

    Vayalan Lakshmanan

  37. 1- agar 36 year me jama karna start kiya and 45 year ke pas expayar ho gaya to nomini ko kya milega 8.5 lakh ya 5000 pension ya dono.
    2- Agar 60 year tak jama kiya and us time 8.5 lakh lena chahe pension nahi to kya use 8.5 milega.
    3- Agar 60 year tak jama kiya and 65 year me expayar ho gaya to kya nomini ko 8.5 lakh bhi milega and pension bhi milega.
    4- Agar 60 year tak jama kiya and 65 year me expayar ho gaya and expayar hone ke bad nomini ka bhi 6 year ke bad expayar ho jata hai to kya unke larke ko kitne year tak pension milega and kitna milega.
    5- atal bihari pension yojna me.

    1. Hi Baijnath,
      1. Agar 60 sal se pehle subscriber ki death ho jati hai to uske spouse (wife/husband) ko pension milna suru hota hai. Aur agar spouse ki bhi death ho jaye, to nominee ko corpus amount milta hai.
      2. Corpus amount sirf nominee ko hi milta hai jab subscriber aur spouse dono ki death ho jati hai.
      3. Nominee ko sirf corpus hi milta hai.
      4. Pehle 3 points ke jawab me apke iss sawal ka jawab mil jata hai.
      5. Sare jawab Atal Pension Yojana ke liye hi diya gaya hai.

        1. The spouse is not entitled for pension on premature death of the subscriber. He/She can get the corpus amount only along with interest. However as per latest amendments, if the spouse wishes to continue the plan till the age of subscriber, he/she may opt to pay the remaining installments and avail pension benefits.

  38. monthly pension amount of rs.5000/- is meagre. it should be atleast rs.100000/- considering the annual rate of inflation as also inceasing cost of living as also medical expenses

    1. Hi Praful,
      Yes you are right that this small amount will not be able to beat the inflation rate. But we should not forget that, it is mainly targeted for the unorganised sector of people. As of now they are not covered under any type of pension scheme. So it is a small step from the govt. to penetrate the insurance coverage in that segment.

  39. if we pay 1454/month for 20 years considering the age as 40 – the contribution amount is around 348000rs for a pension of 5000rs/month.

    my suggestion is if you pay 1454/month in a recurring deposit of any bank with present interest is 970128rs. the simple interest for this amount will fetch 67908 rs ie. 5600rs/month.

    600rs less then expected.
    So it will be beneficial only for your spouse in case of an uneventful death before 60.

    I dont find any logic

    1. Hi Manjunath,
      If you invest in any investment product regularly for a span of 20 years, definitely the corpus amount will be better than this. But the concept behind any regular investment scheme & annuity scheme is completely different. If you could plan your retirement corpus by choosing the best products (such as Mutual Fund, PPF, Stock Market etc.) that would have been the best alternative of Atal Pension Yojana.

  40. The govt has taken a great effort. The doubt i have is how long after i attain 60 years, will i get this benefit. Till my death or for a fixed time period like 5 years. Please reply

    1. Hi Mehul,
      I think instead of Atal Pension Yojana, you can open a bank PPF account & start investing in that for a long term.

  41. if any person contribute 5 year and next 15 year unable to contribute so
    5 year deposit amount what should be ? those amount is forfeited or not ?
    so please clear that point ? ATAL PENTION JOJANA


  43. all new scheme louched by pm is very good but school student is not cover of this scheme

    1. I think that’s a good point. There should be some more scheme which will encourage people to send every kid to school, may be in pipeline.

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