Finzony
Government Scheme

Atal Pension Yojana (APY)

Secure your old age with a guaranteed government pension scheme.

Atal Pension Yojana (APY)

25 Years
18 Yrs (Min)40 Yrs (Max)
₹ 5,000

Contribution increases with age. Joining early (e.g., at 18) saves you ~60% in total investment.

Monthly Contribution

₹ 376

Auto-debited monthly

Pension Starts In

2061

At age 60

Total Investment
₹ 157,920over 35 years
Corpus Return to Nominee₹ 850,000
Returns guaranteed by Govt. of India

About Atal Pension Yojana

Atal Pension Yojana (APY) is an old age income security scheme for a savings account holder in the age group of 18-40 years who is not an income tax-payee. The scheme helps in addressing the longevity risks among the workers in the unorganized sector and encourages the workers to voluntarily save for their retirement.

Key Features

The scheme is mainly targeted at the poor, the under-privileged and workers in the unorganized sector.

  • Guaranteed Pension: ₹1,000 to ₹5,000 per month.
  • Eligible Age: 18 to 40 years.
  • Vesting Period: Minimum 20 years of contribution.
  • Tax Benefits: Eligible for tax deduction under Section 80CCD.

Contribution Logic

The contribution amount depends on the age of entry and the desired pension slab. The earlier you join, the lower your contribution.

Calculation Formula

  • Monthly Contribution = Based on Age & Pension Slab
  • Total Investment = Monthly Contribution × Months remaining until 60
  • Corpus Return = Fixed amount returned to nominee (e.g., ₹8.5 Lakh for ₹5k pension)

Example Scenario

If you join at age 18 for a ₹5,000 pension:

  • Monthly Contribution: ₹210
  • Total Years to Contribute: 42 Years
  • Total Investment: ~₹1.05 Lakh
  • Corpus to Nominee: ₹8.5 Lakh

How to Apply

  1. Visit your bank branch where you hold a savings account.
  2. Fill the APY registration form.
  3. Provide Aadhaar and Mobile number.
  4. Ensure sufficient balance in your account for auto-debit of the first contribution.

Eligibility Criteria

  • Must be an Indian Citizen.
  • Age must be between 18 and 40 years.
  • Must have a valid savings bank account.
  • Should not be an income tax payer.

Advantages

  • Low Risk (Govt. Backed)
  • Guaranteed Returns
  • Social Security
  • Spouse Benefits

Frequently Asked Questions

What happens if I stop paying?

The account will be frozen after 6 months, deactivated after 12 months, and closed after 24 months of non-payment.

Can I exit before 60?

Voluntary exit is permitted only in exceptional circumstances like death or terminal illness. In other cases, only your contribution plus interest is returned.

Is the pension taxable?

The pension amount received after age 60 is treated as income and taxed according to your income tax slab.

Can I increase my pension amount later?

Yes, you can upgrade or downgrade your pension slab once in a financial year.