Finance Minister Nirmala Sitharaman informed the Lok Sabha that the popularity of the Atal Pension Yojana (APY) is continuously increasing across the country. According to official figures, more than 8.34 crore people had invested in the scheme by October 31, 2025.  Approximately 48 percent of these subscribers, or 4.04 crore, are women, which is a significant indicator towards social security. Workers in the unorganised sector, small traders, domestic workers, and people from lower-income groups are adopting this scheme in large numbers.

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Scheme’s Launch and Objectives

The Atal Pension Yojana was launched on May 9, 2015. Its objective is to provide regular pension security to ordinary citizens in their old age. It is primarily designed for those who work in the unorganised sector and do not have any kind of pension arrangement. Anyone between the ages of 18 and 40 can join the scheme, provided they have a savings account in a bank or post office. The pension under the scheme starts after the age of 60. The first batch will receive their pensions from 2035.

Extensive Awareness Campaign by the Government and Agencies

The PFRDA and the central government are continuously taking initiatives to make the scheme more effective. Brochures have been released in 13 languages ​​to easily disseminate information to the public. Efforts are being made to spread awareness through virtual training of bank correspondents, women from self-help groups, bank agents, and rural-level workers. Institutions like NABARD, NRLM, SRLMs, and NCFE are also playing a crucial role in this awareness campaign. This has led to a rapid expansion of the scheme’s reach in rural areas.

Who Can Benefit from this Scheme?

The most important rule of the scheme is that, after October 1, 2022, only those who do not pay income tax are eligible. Low-income families, unorganised sector workers, agricultural labourers, small shopkeepers, and self-employed individuals are the biggest beneficiaries of this scheme. The minimum investment period has been set at 20 years to build a robust pension fund.

How and How Much to Contribute

Contributions to the scheme are determined by age. If a person chooses a monthly pension of ₹1000, their contribution is determined accordingly.

For example, the monthly contribution is only ₹46 if joining at age 19.

At age 24, this amount is ₹70,

at age 29, ₹106,

at age 34, ₹165,

and at age 39, ₹264.

This contribution must be paid regularly until the age of 60. Upon reaching 60 years of age, a fund of approximately ₹1.7 lakh is created, based on which the fixed pension is paid.

Pension and Fund Arrangement After Death

If the subscriber dies after the age of 60, their spouse continues to receive the same monthly pension. After the death of both spouses, the entire fund is returned to the nominee. In this way, the scheme guarantees security for both the elderly person and their family.

Rules for Delayed Payments

If the contribution is not deposited by the due date due to insufficient funds in the account, a penalty is levied. This penalty is calculated at ₹1 per ₹100 per month. However, since contributions are auto-debited, the chances of missing a payment are low.

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A Strong Security Framework for India’s Unorganised Sector

The Atal Pension Yojana has emerged as a reliable pension option for millions of people working in the unorganised sector of the country. Due to low investment, guaranteed pension, and family security, this scheme is rapidly gaining popularity.