Atal Pension Yojana (APY)

Brief
Atal Pension Yojana (APY) is a government-backed social security scheme in India designed primarily for workers in the unorganized sector to provide a guaranteed monthly pension after retirement.

Objective
- To create a universal social security system for all Indians, particularly the poor and underprivileged
- To encourage voluntary savings for retirement to address longevity risks
- To provide dignified retirement life with a fixed monthly income

Eligibility Criteria
- Indian citizen
- Aged 18 to 40 years
- Active savings bank or post office account for auto-debit
- Ineligible for income tax payers as of Oct 1, 2022
- Minimum contribution period of 20 years

Benefits
- Guaranteed Pension: Fixed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 starting at age 60
- Spousal Pension: In case of the subscriber's death, the spouse continues to receive the same pension amount for life
- Nominee Benefit: After the death of both the subscriber and the spouse, the accumulated pension wealth is returned to the nominee
- Tax Deductions: Contributions are eligible for tax deductions of up to ₹50,000 under Section 80CCD (1B)

Nodal Department
Pension Fund Regulatory and Development Authority (PFRDA)