Atal Pension Yojana
The short version
Atal Pension Yojana is a pension for people who don’t pay income tax. You pick the pension you want, ₹1,000 to ₹5,000 a month, pay a fixed small amount from your bank account until 60, and the government guarantees that pension for the rest of your life, then for your spouse.
Pension
a month, guaranteed
Join at
pay till 60
From
a month, at 18
Family
then nominee gets corpus
Since 1 October 2022, people who pay income tax can’t join. Contribution amounts are from PFRDA’s official chart.
Step by step
How APY works
- 01
Join through your bank
Any savings account holder aged 18 to 40 can sign up at the branch or in net banking. One APY account per person.
- 02
Choose your pension
₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 a month after 60. You can change it once a year.
- 03
Auto-debit until 60
A fixed amount leaves your account monthly, quarterly or half-yearly. The younger you join, the smaller it is.
- 04
Guaranteed pension
From 60 you get the pension you chose for life. If the invested money earns less, the government makes up the gap.
See it
Play with the numbers
Move the sliders and tap the chips. Everything recalculates as you go, using the scheme’s own rules.
What it costs you each month
for 35 years, until you turn 60
From PFRDA’s official contribution chart. Quarterly and half-yearly debits are also possible.
of pension
after you and spouse
Same pension, very different price: ₹210 a month if you join at 18, ₹1,454 at 40. That is 6.9× more for joining 22 years later.
It keeps paying after you
You, from 60: ₹5,000/mo
guaranteed for life
Then your spouse: ₹5,000/mo
the same pension, for life
Then your nominee: ₹8.5L
the corpus, paid once
If you die before 60, your spouse can keep paying in and still get the pension, or close the account and take the corpus.
Key rules
The rules that matter
Who can join
with a savings account
Not for taxpayers
their accounts are closed and refunded
Pay for
at least 20 years
If you die first
same pension for life
After both
gets ₹1.7L to ₹8.5L
Change pension
up or down
Tax
How it’s taxed
APY contributions count as NPS contributions for tax, but most people who join don’t pay income tax anyway.
Put in: Under Section 80CCD(1), old regime. In practice members are non-taxpayers.
Grows: Nothing is taxed while you pay in.
Take out: The pension counts as income, but ₹5,000 a month is far below the taxable limit.
Is it for you
Who it suits
A good fit if
- You don’t pay income tax and want a fixed pension in old age.
- You work in the unorganised sector with no employer pension or PF.
- You want your spouse protected with the same pension.
- You prefer a fixed small debit to deciding how to invest.
Think twice if
- !You pay income tax: you can’t join (look at NPS instead).
- !₹5,000 a month will buy much less in 30 years: treat it as a base, not your whole plan.
- !You can’t keep the debit going: missed payments add fees and the account is eventually closed.
Avoid these
Common mistakes
Joining late
For a ₹5,000 pension the monthly cost is ₹210 at 18 but ₹1,454 at 40, nearly seven times more, for the same pension.
Keeping too little in the account
If the auto-debit fails, a late fee of ₹1 to ₹10 a month is charged. After a long gap the account is frozen and then closed.
Not adding a spouse as nominee
The spouse is the one who continues the pension. Keep the details current with your bank.
Expecting the old co-contribution
The government’s 50% co-contribution was only for people who joined in 2015-16, for five years. New members don’t get it.
Compare
Atal Pension next to NPS
Atal
How to join
How to join APY
- 1
Ask your bank
At the branch or in net banking, look for Atal Pension Yojana under social security schemes.
- 2
Pick a pension and a frequency
The form shows the fixed contribution for your age and pension. Choose monthly, quarterly or half-yearly debit.
- 3
Keep the balance
Make sure the debit amount is in the account on the due date to avoid late fees.
Documents you’ll need
- Aadhaar
- Savings bank account
- Mobile number
- Spouse and nominee details
You join through the bank or post office where you have a savings account. Truely Money does not take applications.
FAQ
Questions people ask
Who is not allowed to join?
Anyone who is or has been an income-tax payer, from 1 October 2022. If such a person joined after that date, the account is closed and the contributions are returned.
What does my nominee get?
After both you and your spouse die, the nominee gets the corpus: ₹1.7 lakh for the ₹1,000 pension, rising to ₹8.5 lakh for the ₹5,000 pension.
Can I leave before 60?
Yes, voluntarily. You get back your contributions plus what they actually earned, minus charges. The guaranteed pension then no longer applies.
What if I die before 60?
Your spouse can keep paying until you would have turned 60 and then get the same pension, or close the account and take the corpus.
Is the pension amount fixed forever?
Yes, it is a fixed amount. It does not rise with inflation, so its real value falls over the years.
Can I have more than one APY account?
No. One account per person.
Go further
Related tools and guides
Checked against official sources on 21 Oct 2026. Government rates and rules change, so confirm the latest on the official site before you act. This page explains how the scheme works and is not personal financial advice. Truely Money is independent, is not affiliated with PFRDA, Ministry of Finance or any government body, and does not take applications.