Why in news?
India’s flagship old‑age income scheme, the Atal Pension Yojana (APY), has surpassed 9 crore enrolments as of 21 April 2026. More than 1.35 crore new subscribers joined in the 2025–26 financial year, the highest annual addition since the scheme’s launch in 2015.
Background
APY was introduced on 9 May 2015 as part of a broader push for universal social security. It is a voluntary, periodic contribution‑based pension system designed primarily for workers in the unorganised sector who lack formal retirement benefits. The scheme guarantees a fixed monthly pension ranging from ₹1,000 to ₹5,000 after the subscriber turns 60. To join, individuals must have a savings bank account and be between 18 and 40 years old.
How the scheme works
- Contribution and pension: Subscribers choose their desired pension amount at enrolment. Based on the chosen pension and the age at entry, a fixed contribution is auto‑debited from the subscriber’s bank account every month, quarter or half‑year until age 60.
- Government guarantee: If the returns on investment are insufficient to provide the promised pension, the central government will fund the shortfall. Conversely, if investment returns are higher, subscribers receive a larger pension.
- Benefits to spouse and nominee: Upon the subscriber’s death, the spouse is entitled to receive the same pension. After both have passed away, the accumulated corpus is returned to a nominated heir.
- Eligibility changes: From 1 October 2022, anyone who is or has been an income‑tax payer is not eligible to join APY. Existing subscribers who later become income‑tax payers may have their accounts closed and receive their accumulated contributions back.
- Low charges: Account opening and annual maintenance charges are minimal—about ₹15 each—and there are no transaction fees. Contributions start as low as ₹42 per month for an 18‑year‑old aiming for a ₹1,000 pension.
Significance
- Financial security: APY offers a reliable pension to millions of low‑income workers, reducing old‑age poverty.
- Large outreach: Crossing 9 crore subscribers demonstrates broad acceptance and trust in the scheme, which complements other social security initiatives such as the National Pension System.
- Encouraging savings: Automatic contributions instil a habit of long‑term saving among workers who may otherwise rely on informal arrangements.
Sources: PIB
