Atal Pension Yojana

Atal Pension Yojana (APY) 2015

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Atal Pension Scheme is a Great Pension Plan for Daily Wage Workers:

To inculcate a habit of compulsory saving for retirement, the Government of India in 2015 announced the Atal Pension Scheme (APS) for the workers of the unorganized sector. According to the 66th Round of NSSO Survey of 2011-12, 88% of Indian workers don’t have income support during their old age!  

The Atal Pension Yojana (APY) is aimed at people who want to save a small amount of money for a fixed pension (primarily daily wage workers who are unable to save for their future), once they retire. People working in the private sector, who are neither tax-payees nor a part of any other social security scheme, can also enjoy its benefits. All eligible family members can subscribe APS in their names for higher pension benefits to their families.

Atal Pension Yojana

Atal Pension Yojana Overview

Every eligible citizen who joins the Atal pension plan between 1 June 2015 and 1 Dec 2015 will get 50% of the contribution amount or Rs.1000/year, whichever is lower. This co-contribution by the Government will hold good for a maximum of 5 years. You can get a fixed pension ranging from Rs.1000 to a maximum of Rs. 5000/month by investing through this scheme. The eligible age to join the Atal Pension Yojana is 18 years and up to 40 years. You will start receiving your pension from the age of 60. Hence, the minimum period of contribution will be 20 years. You can exit from the scheme only in case of exceptional circumstances such as death of beneficiary or a terminal disease. Any false declaration in the application form will lead to loss of Government’s contribution and penalty.

How to join – Atal Pension Scheme

You can enroll for the Atal Pension Scheme if you have a savings account with auto debit facility. If you don’t have an account, you can join after opening one in any of the nationalized banks under Jan Dhan Yojna. No charges are levied by the bank for this account. Mobile number and Aadhar card number are the only mandatory requirements on the APS form. One should also keep the minimum balance in the account which would be auto debited every month, as contribution through this scheme is possible only via a savings account with auto debit facility. Due date for contribution can be the 1st of every month or any other day of the month as opted by subscriber. Banks would send timely SMS alerts regarding account information, due date etc.

Contribution amount

The amount of contribution you would have to make depends on the age of the member. So, the amount of contribution will be less if one joins early and more if one joins late. Flexible payment options like monthly, quarterly or half yearly are available.

Atal Pension Yojana - Example 1:

Monthly pension of Rs. 3000 and a corpus amount of Rs.5.1 Lakhs

If one joins the scheme at 18 years of age, the contribution amount would be Rs. 126/month and the same will be Rs. 873/month for a 40 year old.

Atal Pension Yojana - Example 2:

Monthly pension of Rs. 5000 and a corpus amount of Rs.8.5 lakhs

If one joins the scheme at 25 years of age, the contribution amount would be Rs.376/month and the same will be Rs. 902/month for a 40 year old.

Likewise, contribution amount is calculated for people of different age groups depending on the years of contribution and age. One can also opt to increase or decrease the amount of pension but this option would be available once in a year in the month of April.


If one fails to maintain the minimum contribution balance in account on the date of auto debit, a fixed amount of penalty/charge would be applicable.

This penalty amount will remain part of the pension corpus and discontinuation of contribution will lead to the following-

  • Account will be frozen after 6 months
  • Account will be deactivated after 12 months
  • Account will be closed after 24 months

Payment of Pension

On completion of 60 years, the subscriber will have to submit a request to the bank, to draw the guaranteed pension amount. In case of death of the subscriber, the beneficiary will get the corpus amount and if the beneficiary is not alive at the time of payment, the nominee will get the corpus fund.

Initiated and backed by the Government of India, Atal Pension Plan is for the poor and the under-privileged workers of unorganized sector. The scheme aims to help them save for old age. Go ahead and educate people around you so that they can avail maximum benefit of this scheme.