Atal Pension Yojana under Budget 2015-16
Atal Pension Yojana

Atal Pension Yojana – A complete guide

Updated on 23 Jan 2020.

Indian government launched Atal Pension Yojan (APY) in 2015. APY is a low-cost pension scheme for the people employed in the unorganized sector and small sectors. The pension would be between Rs.1,000 per month to a maximum of Rs.5,000 per month.

It’s a government’s measure to provide financial security by providing a defined pension.

Atal Pension Yojana Eligibility

Any citizen of India can join the APY scheme if satisfy following criteria-

  • The minimum age of joining – 18 years
  • The maximum age of joining – 40 years. This means the minimum contribution towards this scheme is 20 years.
  • A savings bank account, Aadhar Card and mobile number.
  • The subscriber shouldn’t be covered under any social security scheme
  • The subscriber should not be an income taxpayer.

Aadhar Card is not mandatory but appreciated for KYC details.

Atal Pension Yojana Features and Benefits

Let’s have a look at all the details including eligibility and benefits of Atal Pension Yojna.

1. Pension Amount

Under APY scheme contributors will get a guaranteed pension of Rs. 1,000, 2,000, 3,000, 4,000 and Rs. 5,000 depending upon the contributions made. The pension will start at the age of 60 years.

One can open only one APY account. Multiple accounts are not permitted.

2. Contribution/Subscription Amount

You can fix the contribution amount based on the pension amount you want at a later stage.

For instance, if the subscriber joins at the age of 18 years, and he expects a monthly pension of Rs.1,000 per month.  He has to contribute Rs.42 per month till he attains the age of 60 years. Similarly, if he wishes to have a monthly pension of Rs.5,000 then contribution per month will rise to Rs.210.

You can understand monthly contribution at different age and expected pension amount from the table below.

Atal Pension Yojana Contribution Calculator

It’s better to start as early as possible to get maximum benefits.

3. Contribution Payment Mode

The subscriber can contribute on a monthly, quarterly or half-yearly basis. The contribution amount will auto-debited from his savings account provided to the department. This auto-debit facility is the only payment method.

You can fix a particular date for auto-debit of contribution otherwise the contribution will be fixed as per the date of the first contribution made.

4. Change in the Contribution Payment

You can change the contribution payment amount once a year. You can do that in April every year. You can increase or decrease the contribution amount to switch towards a higher or lower pension amount.

5. Government Contribution

The government will add 50% of the total contribution with a maximum amount of Rs. 1,000 at the end of the financial year.

Further, if you are among the following social security schemes or you an income taxpayer, you are not eligible for the benefit of Government Contribution.

  • Employees Provident Fund & Miscellaneous Provision Act, 1952.
  • The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
  • Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
  • Seamen’s Provident Fund Act, 1966.
  • Jammu Kashmir Employees Provident Fund & Miscellaneous Provision Act, 1961.
  • Any other statutory social security scheme

If you are covered under any of the above schemes such as EPF, you can still apply for Atal Pension Yojana but the benefit of Government Contribution would not be available to you. But you will get the rest of the benefits provided under the APY scheme.

5. Default in Payment of Contribution

Insufficient balance in the savings bank account to pay the contribution towards the APY account may cause penalty ranging from Rs.1 per month to Rs.10 per month.

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

Continuous non-payment of the contribution may result in the following actions:

  • After 6 months account will be frozen.
  • After 12 months account will be deactivated.
  • After 24 months account will be closed.

6. Nomination facility

The nominee name is to be filled in the form along with his/her aadhar card. In case the nominee is minor, you can provide the name of the legal guardian also along with the minor’s details.

Benefits of Atal Pension Yojana

  • Anyone who belongs to an unorganized social sector can secure his old age with a guaranteed pension.
  • The pension will last life long.
  • In case of death of subscriber, his/her spouse will get the same amount of monthly pension.
  • In case subscriber & spouse, nominee will get the pension wealth accumulated till date.
  • Automatically save money for his future without wasting his time in the bank queues.
  • The process is simple so even uneducated can get the benefits. He has to approach the nearest post office or bank.
  • Another plus point is – The government will also contribute to the subscriber’s account.
  • Flexibility to pay monthly, quarterly or half-yearly.
  • Flexibility to change the contribution amount depending upon current income.
  • In case of payment skip, you can still continue by paying small penalty charges.

How to Apply for Atal Pension Yojana?

You can approach your nearest post office or bank where you have savings account to open Atal Pension Yojana Account. You have to fill a simple consent-cum-declaration form and submit there.

You can download application form using below link.

https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=1269

The application form will look like this-

Atal Pension Yojana

Withdrawal Procedure in Atal Pension Yojana

1. At the age of 60 years: Upon completion of 60 years, the subscribers can submit the request to the associated bank/post office for drawing the guaranteed monthly pension.

2. In case of death of the Subscriber (after 60 years): In case of death of the subscriber, pension benefits would be transferred to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be given to his nominee.

Atal Pension Yojana Nominee Corpus

3. Exit Before the age of 60 Years: The Exit before age 60 would be permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.

4. Death of Subscriber before the age of 60 years: If subscriber demises before attaining the age of 60 years (contributing age limit), then only the deposited amount will be refunded to the nominee. The refundable amount will not include any interest.

Tax Benefits of Atal Pension Yojana

There are no tax benefits available for Atal Pension Yojana because the prime focus of this scheme is to facilitate small unorganized sector who doesn’t come under Income Tax payer category.

That’s all about Atal Pension Yojana. Let me know your thoughts in the comments.

 

146 thoughts on “Atal Pension Yojana – A complete guide”

  1. I AM A LADY AND PAYING EVERY MONTH RS 689/- AT APY. AND I HAVE GIVEN MY HUSBAND NAME AS MY NOMINEE BUT HE IS 5.5 YRS OLDER THEN ME. NOW MY QUESTION IS THIS IF I DEATH AFTER 60 YRS COMPLETE MY SPOUSE MEANS MY HUSBAND WILL GET THE MONTHLY PENSION RIGHT ! AND HE WILL GET THE CORPUS AMT ALSO , IS NOT ? BUT IF MY HUSBAND DEATH BEFORE ME THEN WILL MY CHILD GET THE SAME PENSION AND CORPUS AMOUNT.

  2. MURALIDHARAN NAIR

    Can any body guide me which is best long time investment savings scheme, IVP,NSC,postal savings where money gets doubled.??

  3. MURALIDHARAN NAIR

    My question is if i take a APY now at age 37, opting for pension 5000 pm & pension will start at 60. so my contribution for 24 yrs will be Rs 313056/- if suppose I dies at 62 yrs then I can only enjoy pension for 2 yrs ie i will receive Rs 120000/-(Rs 5000 x 24). then i will be in a loss,Right!!! How will I be benifitted with this scheme. Will my nominee get some additional money … Pls clarify…??

    1. after death of subscriber spouse will start to get monthly pension of rs 5000 till death and thereafter nominee will get rs 850000.

  4. sir,
    i am applied for atal pension yojana, scheme and paying every month but now one of my friend told me if you have pan card and it payer you will not calculated end of policy. so what should i do shall i drop or continue policy. if i want to drop what is the procedure?

  5. i have a doubt, if i died at the age of 65 then for this 5 year i had received a pension of Rs. (60000*5 = 300000) (if i had opt 5000 / PM pension option). In this case my wife will received pension till she alive, assume she alive more 5 year so total amount earned is (60000*10 = 6000000), now my doubt is what amount my daughter get..? a croups of 8.5 L (after death of mine and my wife) or only (2.5 L {8.5 L – 6 L)}

    Tushar Mandaliya,
    [email protected]
    9376989896

  6. i want to know in brief like if i m going to open a APY (Atal Pension yojna) then can u clarify that if my age is 36 years prefer 5000/- per month pension scheme, on whose period up to 40 years or up to 60 years to deposited in pension scheme.

  7. Dear Sir, I am a 32 yr old tax payer and want to get APY .My premium would be Rs 689 pm including govt contri. But bcoz m a tax payer what would be my premium without govt contri. Pls revert.

  8. Princy Shaji

    Sir, Now I am 32 years old. I wish to joining APY scheme , with a monthly installment of Rs.689/-. Whem I am at 60 Years , how I get my deposit amount and Pension. I want clarification.

  9. My d.o.b is 14/05/1975.I don’t pay income tax.Is i can join govt.Atal pension Yojana and how i can join this scheme

  10. Raghunath Patra

    This is a good pension plan for non employed person in rural village of our state Odisha.
    If percapital income will increase, then this plan will be esay to pay till the age of sixty by all the the eligible persion.

  11. I have only 1 que if I join this yojna and I have paid money upto 6years after 10 year I will death due to some circumstances than what benefits will give u to my family for future .plz reply me urgently

  12. In Atal Pension yojana, if i want to change nominee after my marriage, can i change nominee? Because currently I am unmarried so my guardian is nominee but after when I am married I will be change my nominee so is it posdible or not?

  13. My question is that can i change nominee after my marriage? Because currently I am unmarried so nominee is my guardian but after my marriage i will change my nominee? Is it possible

  14. Deepa. S. Bhargava

    Sir,
    please let me know can i join Atal Pension Yojna. My Date of Birth is 31.01.1975.

    Deepa

    1. you are complete 40 years on 1/June/2015 and condition is up to 40 years, i thing you can eligible but contact to you account

  15. Shravan Kumar arya

    Who need Pension?

    The Person who has worked in the life upto 60years & the investment to be done by any person around 50 yrs age & in the scheme eligibility age is upto 40 years, whereas it should start from 401 years & ends upto 60years,so that a person can get pension.

    The other factor is that the person should not tax payer, why tax pay karna bura he,agar ye he to tax kon pay keraga? It is very bad,govt should provide pension free of cost to the tax payer based on the tax paid by them during the life,so that each & every one pay tax at their own will.

    The person should not be member of any social security scheme,It is also very bad,because every person should be free to think better for him & option should be provided to each person to avail more benefit for any govt. scheme.

    Being a citizen of India every person has his fundamental right to think better about himself & his family members also.

    So,consider my valuable points into the new pension scheme,so every Indian can get benefits.

  16. Modi government. Atal Yojana retirement pension.
    A Calculation.
    @@@@@@@@@@@@@@@@@@@@@@@@
    Arrive age. – 18
    Years of paying – 42
    Rupee paying Rs42 / =
    Atal retirement pension Yojana By project
    Get a payment of – 17000.00
    Monthly pension. – 1000.00
    @@@@@@@@@@@@@@@@@@@@@@@@@
    Calculation of the Post Office.
    Arrive age. – 18
    Years of paying – 42
    Rupee paying Rs42 / =
    Pay at the post office
    interest of 8.4% per annum (quarterly
    compounded) and recive a amount Rs 193673.00
    The sixty-year-old senior Citizen for Rs 193673.00
    Will receive interest rate of 9.3% per annum.
    Monthly income by interest 1500.00 / =
    ??????????????????????????????

    1. what about CORPUS OF Rs 850000 to the nominee
      .in ur poor calculation. DONT SPREAD WRONG VALUATIONS. will YOUR Rs 193673 ever become equal to Rs 850000.then

      1. He is giving example about 1000 monthly pension & you are talking about corpus of 5000 monthly pension. APY is just a waste scheme where your fund will be blocked till 60 years of age.

  17. After 30 years, I will be 60yr old and it will be 2045. considering inflation, after 30 years, I don’t think one would be able to live with 5000/month. even today, living with 5000/- month for even a single person is very difficult. The scheme is short sighted and hence flawed.

  18. The contribution to be made is till the age of 60yrs or 40yrs?

    Now I am 21yrs old, suppose if I dont opt for this scheme now I will opt at the age of 39, will I get 5k pension afta 60 yrs? Can I do that? I can save contribution money till the age 38.

    1. The contribution is to be made till the age of 60 years. If you start contribution by the age of 39 years then you will have to contribute for 21 years i.e. from 39 years to 60 years respectively.

  19. my instalment of 1454 has been deducted from my saving account so then now am I eligible and get all benefits under this scheme or not as my birth date is 5 – 5 – 1975

    1. S K Venkatesh

      Hi

      I am born May 5th, 1975 as well. But the bank manager in SBI says I am not eligible as I should be below 40 years and not 40 years and 2 months. Any idea how I can clarify this with a proof, so that the bank manager accepts our application. Thank you.

      Regards,

  20. Atal pension yojana mai Agar Policy holder ki death 60 year se pehle ho jati hai ,to primium nominee ko bharna padega ya nahi…..?

  21. Is yojna me 330rs per year katenge . Jab tak 60 ke nahin hote jab tak penson nahin milege . 60 saal tak jo paisa jama hoga bahi return kar denge.

  22. I have EPF (Pune) so can I take the benefit of Atal Pension Yojana? If I can then can I get the same benefit as like the other people? For how long I will get the Pension? If I get death at the age of 70 then what benefit will get by my family? Please inform me.

  23. sir,suppose i am taking atal pension yojana scheme .now, i am 21 year only,after 10 year i will dead due to any circumstances then policy will be continued if yes then who shall pay the premium or policy will deactivated..

  24. Gajanan Hembade

    Thise scheme is better to everyone for life security in futur. but we must take detail information about it

  25. my birth date is 5 – 5 – 1975 so am I eligible for this scheme and my income is agricultural income so I don’t pay income tax regularly so can I apply for this scheme

  26. Can you please conform what happend if i die before 60yrs old..

    example..i am 30yr old now,i have contributed pension amount for 10yrs..after 10yrs i died..then what happend to my pension?my wife will get pension or nominee will get corpurs or whatever i paid shd return back

  27. I AM 30 YEARS OLD.
    A WANT 2 WISH RS 5000 P.M. PENSION.
    IF I DIE IN THE OF 35 YEAR HOW MUCH AMOUNT MY NOMINEE WILL GET???

  28. N.SRINIVAS.RAO

    my age is 40 years completed.how can I apply for this Atal Pension Yojana. And where I need to go to open an account of this. Can you help me out asap.

  29. i am 38 years old women i have taken 5000 rs plan. Unfortunately if i died in 50th age, how much amount pension will be paid to my nominee

    jai

  30. Sheojee prasad

    Sir we want know about atal pension yojna.if applicant death within 60yrs so deposit amount will be returned to nominee or not.if applicant death after 60yrs within 64yrs then what benifit will provide to nominee.kindly clear this query.only mention pension will start after 60yrs.ater 60yrs apllicant death then what facility to nominee.

    1. If the subscribers dies before 60 years, then the pension amount would be given to the spouse. If both the subscriber as well as spouse died, then the pension corpus would be given to the nominee as stated above in the post.

  31. MODI JI NE JO ATAL PENSION YOJNA NIKALA ISSE SABIT HO GAYA KU WO GARIB KA NHI AMIR KA DOST. YE YOJNA ME GARIB KO GHATA HAI AUR MODI JO KO PROFIT HAI.

    ISSKE VIRUDH ME AAEAJ UTHANA CHAHYE THA.

    BAHUT GALAT KIYE MODI JI

    BAHUT GALAT

  32. atal pension yojana swavalamban yojana ki tulna me ghatiya yojna hai.20 sal baad badhati mahgai me 5000 rs ki value 50 rs ke barabar hogi. yojna me mahgai ke anusar growth honi chahiye thi. joki swavlamban me thi. atal pension yojna se pramanit hota hai . ki modi sarkar garibon ko sirf bewkoof bana rahi hai.

  33. Now i am 18y and non tax payer now i can join APY but after 3-4 i will get job n coming in tax payer category them also i can avail benifit of this scheem or not?

  34. How can I apply for this Atal Pension Yojana. And where I need to go to open an account of this. Can you help me out asap.

    ——————-
    Naresh

    1. This is naresh u can open this account in bank now this is available in vijaya bank website u can go through it u should have a account with them to open this

  35. AMAL KUMAR BISWAS

    I like to take the FRANCHISEE of ATAL PENSION YOJANA.So kindly arrange send the details where and to whom I will apply and what will be the remuneration for that service I will get.Please also intimate me what is the financial involvement as agreegator
    Thanks

  36. DEAR SIR,

    HOW CAN I APPLY FOR ATAL PENSION YOJANA. WHERE I AM GOING TO OPEN THESE ACCOUNT. KINDLY REVERT ME ASAP.

    THANK AND REGARDS,

    ROHIT

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