Atal Pension Yojana (APY) is a government scheme for citizens aged 18-40 years. It offers a guaranteed monthly pension of ₹1,000 to ₹5,000 after the age of 60. Monthly installment depends on age and pension amount chosen.
It is wise to plan before you start worrying about money in old age. There are many good options available in the market for the common people, one of which is the Central Government’s Atal Pension Yojana (APY). How popular this scheme is becoming can be gauged from the fact that according to the data till April 21, 2026, the number of people joining it has crossed 9 crores.
What is Atal Pension Yojana?
Atal Pension Yojana is a pension scheme specially created for people working in the unorganized sector. It is managed by the Pension Fund Regulatory and Development Authority (PFRDA). Under this scheme, you get a guaranteed pension of Rs 1,000 to Rs 5,000 every month after the age of 60 years. How much money you have to deposit every month depends on your age and the pension amount chosen. Money is auto-debited from your bank account.
Let us understand how much investment will have to be made to get a pension of Rs 5000 per month.
If you start at the age of 18…
Investment time: 42 years
Monthly Installment: Rs 210
Amount to be received by the nominee: Rs 8.5 lakh
If you start at the age of 30…
Investment time: 30 years
Monthly Installment: Rs 577
Amount to be received by the nominee: Rs 8.5 lakh
If starting at age 40:
Investment time: 20 years
Monthly Installment: Rs 1,454
Amount to be received by the nominee: Rs 8.5 lakh
It is clear that the sooner you start investing, the lower your monthly installment will be. If there is a delay, the amount to be deposited every month increases significantly. This scheme protects not only you but also your family. If the person associated with the scheme dies, his spouse will continue to receive the pension. If both die, the nominee will receive the entire deposited amount.
Any Indian citizen between 18 to 40 years can join this scheme. For this it is necessary to have a savings account in a bank or post office. Providing Aadhaar and mobile number makes the process even easier. You will start receiving your chosen pension on completion of 60 years of age. After you, your spouse will continue to get the same pension and finally the entire deposited amount will be given to the nominee. You can also increase or decrease your pension amount once a year (usually in April). Atal Pension Yojana is a great option for those who want a stable income and low-risk investment. It helps in securing the future through small savings.