The Atal Pension Yojana (APY), a major government retirement scheme aimed at workers in the unorganised sector, has reached over 7.65 crore subscribers.
Saloni Kumari | May 16, 2025 |
Atal Pension Yojana Hits 7.65 Crore Subscribers: Here’s Why It’s Working And How It Supports Retirement
The Atal Pension Yojana (APY), a major government retirement scheme aimed at workers in the unorganised sector, has reached over 7.65 crore subscribers and a total pension fund of Rs 45,974.67 crore as of April 2025. One of the encouraging developments is the rise in female participation, with women now making up around 48% of all subscribers. In fact, in the financial year 2024–25, women accounted for more than 55% of new enrolments.
Launched on May 9, 2015, and active from June 1, 2015, APY was designed to help people without formal retirement benefits save regularly and receive a fixed monthly pension after the age of 60 years. The amount of pension depends on how old the person is at the time of joining and how much they choose to contribute. The scheme mainly targets low-income workers in the informal sector, such as small vendors, domestic workers, or daily wage labourers, who are typically outside the coverage of employee pension systems.
Numerous factors have contributed to the success of Atal Pension Yojana (APY). The government has made contributions easy and flexible, subscribers can pay monthly, quarterly, or half-yearly. Digital services and better rural outreach have facilitated the spread of awareness and simplified the process. Emphasis on enrolling more women has also increased the coverage of the scheme. On a general note, APY instils a long-term savings culture among poor families, providing improved financial security during old age.
| Guaranteed Monthly Pension (Rs.) | Age at Entry | Vesting Period (Years) | Monthly Contribution (Rs.) |
|---|---|---|---|
| 1000 | 19 | 41 | 46 |
| 1000 | 24 | 36 | 70 |
| 1000 | 29 | 31 | 106 |
| 1000 | 34 | 26 | 165 |
| 1000 | 39 | 21 | 264 |
All Indian citizens with the minimum and maximum ages of 18 and 40 years respectively are eligible to become the members of the Atal Pension Yojana (APY), provided they should not be an income taxpayer, since those persons who are income taxpayers have been barred from becoming members of the scheme since October 1, 2022. The person will have to contribute for a period of 20 years to receive the pension. Once they reach the age of 60 years, they start getting a monthly pension ranging from Rs 1,000 to Rs 5,000, depending on their past contributions.
After the subscriber attains the age of 60 years and starts drawing the pension, the scheme goes on to maintain the family’s support even in the event of the subscriber’s death. The same monthly pension is received by the spouse until his or her death. After both the subscriber and spouse have died, the accumulated pension value is transferred to the nominee, who was specified upon subscription to the scheme.
The Atal Pension Yojana (APY) is best for low-income, tax-nonpaying individuals, particularly those who work in rural or informal employment and lack access to schemes such as the Employees’ Provident Fund (EPF). It is not applicable for those looking for market-based returns or those who already have company-sponsored retirement schemes.
Contributions are made under the scheme through auto-debit from a bank or post office savings account. You have an option to pay monthly, every three months, or every six months, as per your choice. The amount of your payment would be specific based on your age at joining and your chosen pension amount. Payments could be done at any time during the due period (like any day in the month for monthly payments).
If you miss a payment because your account doesn’t have enough money, your account goes into default. You can make the payment later, but with a small penalty: Rs 1 per Rs 100 of your contribution for each month of delay. The penalty amount is added to your pension fund. If several payments are missed and your account runs out of money (excluding the government’s part), the account could be closed, and the government’s share will be returned.
In case of any Doubt regarding Membership you can mail us at [email protected]
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