What Atal Pension Yojana is
Atal Pension Yojana (APY) is a government pension scheme for people who do not have a pension from work: daily wage earners, shopkeepers, drivers, domestic workers, farm workers and others outside the formal sector. You pay a small fixed amount from your savings account until you turn 60, and from then on you receive a pension of ₹1,000 to ₹5,000 a month for life. The Central Government guarantees that pension, whatever the markets do.
What your family gets
- You receive the monthly pension from age 60 for the rest of your life.
- Your spouse then receives the same pension for the rest of their life.
- Your nominee finally receives a lump sum, the corpus built up for your pension.
| Monthly pension | Lump sum to the nominee |
|---|---|
| ₹1,000 | ₹1,70,000 |
| ₹2,000 | ₹3,40,000 |
| ₹3,000 | ₹5,10,000 |
| ₹4,000 | ₹6,80,000 |
| ₹5,000 | ₹8,50,000 |
Why joining early matters so much
The contribution is set by your age on the day you join, and it stays the same until 60. Join young and you pay a small amount for many years; join late and you pay much more for fewer years. For the same ₹5,000 pension:
| Age at joining | Monthly payment | Years paying | Total paid |
|---|---|---|---|
| 18 | ₹210 | 42 | ₹1,05,840 |
| 30 | ₹577 | 30 | ₹2,07,720 |
| 40 | ₹1,454 | 20 | ₹3,48,960 |
Joining at 40 costs about 7 times as much each month as joining at 18, and ₹2,43,120 more in total for exactly the same pension.
How to read the chart
The amounts in the calculator come from the contribution chart published with the scheme, not from a formula of ours. A 25-year-old choosing the smallest pension pays ₹76 a month for 35 years, about ₹31,920 in all, and then receives ₹1,000 a month from 60. The pension repays that total in about 3 years, and everything after that, plus your spouse’s pension and the lump sum to your nominee, is what the scheme adds.
How to join
- Ask at the bank or post office where you have a savings account, or use its net banking or app if it offers APY.
- Keep your Aadhaar and mobile number handy, and name your spouse and a nominee.
- Keep enough balance on the debit date each month, quarter or half-year. Missed payments attract a penalty, and a long gap can lead to the account being closed.
If you pay income tax, APY is closed to you; look at the National Pension System instead, which has no such bar and is run by the same regulator.
Frequently asked questions
Who can join Atal Pension Yojana?
Any Indian citizen aged 18 to 40 with a savings bank account. Since 1 October 2022, anyone who is or has ever been an income-tax payer cannot join; if such a person joins anyway, the account is closed and the money saved so far is returned.
How much do I have to pay for a ₹5,000 pension?
It depends only on your age when you join. For a ₹5,000 monthly pension, the official chart asks ₹210 a month at 18, ₹577 at 30 and ₹1,454 at 40, paid until you turn 60.
Is the APY pension guaranteed?
Yes. The Central Government guarantees the pension you choose. If the money invested for you earns less than expected, the government makes up the difference; if it earns more, the pension can be higher.
What happens to APY if I die?
After 60, your spouse receives the same pension for life, and after both of you, your nominee gets the corpus: ₹1.7 lakh to ₹8.5 lakh depending on the pension. If you die before 60, your spouse can keep paying into your account until the date you would have turned 60 and then receive the pension, or take the money saved so far.
Can I leave APY before 60?
Yes, you can exit voluntarily, but you get back only what you paid in plus the interest actually earned on it, after charges, and the guaranteed pension is lost. On the subscriber’s death or a specified serious illness before 60, the money saved so far is paid out.
Monthly, quarterly or half-yearly: which is cheaper?
Half-yearly costs slightly less over a year, then quarterly, then monthly, because a payment made in advance for six months has longer to grow. At 18 for a ₹1,000 pension, that is ₹496 a year against ₹500 and ₹504. The difference is small: pick the one your balance can handle without missing a payment, since late payments attract a penalty.
Sources
Last updated 21 September 2026. Results are estimates for planning only and are not investment, tax or legal advice. See our disclaimer.