Atal Pension Yojana - Retirement Pension Scheme

Atal Pension Yojana (APY) is a government-backed pension scheme specifically designed for unorganized sector workers, self-employed individuals, and citizens not covered by other government pension schemes. Launched in 2015, the scheme aims to provide financial security in old age through guaranteed monthly pensions. Eligibility includes all Indian citizens aged 18-40 years with a valid bank account and Aadhaar number. Subscribers choose desired monthly pension amount (Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000) and contribute fixed monthly amounts based on their age and pension choice. The government co-contributes 50% of the subscriber's contribution or Rs. 1,000 per annum, whichever is lower, for subscribers enrolled in the first year. Government co-contributions are credited directly to the Permanent Retirement Account (PRA). Contributions are made via automatic bank account deduction; enrollment is done through banks or post offices. The scheme is portable; subscribers can change banks or continue contributions while relocating. Upon reaching age 60, guaranteed monthly pensions commence based on the chosen amount and accumulated balance. If a subscriber dies before age 60, the accumulated balance is returned to the nominee. If a subscriber dies after commencing pension, 50% of the monthly pension continues to the spouse, and the remaining balance (if any) goes to the nominee. A critical pitfall: many subscribers lapse the scheme by missing contributions; irregular payments may result in account suspension and loss of government co-contributions. Additionally, pension amounts are fixed and do not increase with inflation.