Atal Pension Yojana gets record 7.65 crore subscribers: Know what has really worked and how it helps subscriber in retirement

Business Mayor

15-05-2025

The scheme has also seen a steady increase in female participation, with women now accounting for approximately 48% of the total subscriber base.
Launched on May 9, 2015, and made operational from June 1 in the same year, the scheme was introduced to address the challenges of longevity risk and inadequate retirement planning among India's informal workforce. It encourages voluntary retirement savings by offering fixed pension benefits determined by the contributor's age at the time of enrolment and their monthly contribution amount.
Primarily aimed at low-income and unorganised sector workers, Atal Pension Yojana has become one of the country's most accessible and inclusive social security initiatives. With a growing subscriber base and an expanding pension fund, the scheme has become an important component of India's retirement savings framework. It promotes long-term financial discipline among lower-income households and aims to ensure financial security for citizens post-retirement.
The government's emphasis on digital accessibility, enhanced rural outreach, and increasing female enrolment has helped deepen the Atal Pension Yojana's reach across the country. In fact, women accounted for over 55% of new subscribers in FY 2024–25, alongside a significant increase in total enrolments during the same period.
Open to Indian citizens between the ages of 18 and 40, Atal Pension Yojana provides a fixed pension ranging from Rs 1,000 to Rs 5,000 per month starting at age 60. Contribution amounts vary based on the age of entry and the selected pension tier. A minimum contribution tenure of 20 years is required.However, since October 1, 2022, individuals classified as income taxpayers are no longer eligible to join the scheme. Initially, the government offered co-contributions of 50% of the subscriber's contribution (up to ?1,000 per annum) for five years to those who enrolled between June 2015 and March 2016—provided they were not income taxpayers and were not covered by any other statutory social security scheme.The Atal Pension Yojana is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the broader framework of the National Pension System (NPS)
Atal Pension Yojana: Contribution breakdown at various levels
Guaranteed Monthly Pension (₹) 1000 Age at Entry Vesting Period (Years) Monthly Contribution (₹) 19 41 Rs 46 24 36 Rs 70 29 31 Rs 106 34 26 Rs 165 39 21 Rs 264
The corpus accumulated at the age of 60 years is Rs 1.7 lakh.
What happens after the subscriber's death?
The promised monthly pension is credited to account of the subscriber. After the age of 60 years, in the event of the subscriber's demise, the Atal Pension Yojana ensures continued financial support for the family. The subscriber's spouse is entitled to receive the same monthly pension amount that the subscriber was receiving, continuing until the spouse's death. Upon the death of both the subscriber and the spouse, the accumulated pension corpus, as it stood at the time the subscriber turned 60, is returned to the nominee designated at the time of enrolment.
Who should consider investing in Atal Pension Yojana?
The Atal Pension Yojana can be best suited for low-income, non-taxpaying individuals, particularly those working in the informal sector or in rural areas who do not have access to formal retirement benefits such as the Employees' Provident Fund (EPF). Since October 1, 2022, income taxpayers are no longer eligible to enroll in the scheme. APY is not advisable for those seeking market-linked returns or already covered by employer-backed pension plans.
How to contribute to Atal Pension Yojana?
Contributions to the Atal Pension Yojana can be made monthly, quarterly, or half-yearly through auto-debit from your savings bank or post office account. The amount you contribute depends on your age at the time of joining and the pension amount you choose. You can make your payment on any day within the due period—for example, anytime in the month for monthly contributions, or during the first month of the period for quarterly or half-yearly payments.
What happens if you miss payments for Atal Pension Yojana?
If there's not enough balance in your account by the due date, it will be considered a default. Missed payments can be deducted later along with a small penalty—₹1 per ₹100 of contribution per month of delay. These penalties are added to your pension corpus. If multiple payments are missed, they may be recovered together once your account has enough funds. Account maintenance charges also apply, and if your corpus (excluding government contribution) becomes zero due to unpaid fees and penalties, the account could be closed and the government's share returned.