Pension safety net expands: Atal Pension Yojana tops 7.65 crore subscribers, women dominate new signups

The Atal Pension Yojana (APY), a government-backed initiative designed for India’s low-income and unorganised sector workers, has recently achieved a subscriber base of 7.65 crore. Launched on May 9, 2015, the scheme aims to provide a fixed monthly pension between Rs 1,000 and Rs 5,000 starting at age 60. 

Managed by the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System framework, APY encourages long-term financial discipline among its participants. Contributions can be made monthly, quarterly, or half-yearly through auto-debits from bank or post office accounts, and penalties apply for missed payments, calculated at Rs 1 per Rs 100 of contribution per month of delay. 

A significant development in the scheme is the increased female participation, with women accounting for over 55% of new subscriptions in the fiscal year 2024-25. This figure highlights the APY’s growing appeal among female workers, who now constitute approximately 48% of the entire subscriber base. Aimed primarily at providing financial security to informal sector workers, the APY addresses longevity risks and inadequate retirement planning. Indian citizens aged 18 to 40 can enrol, with a requisite contribution period of at least 20 years. However, since October 1, 2022, individuals classified as income taxpayers have been ineligible to join, ensuring the scheme benefits those without formal pension plans. 

The contribution required from subscribers is determined by their age at enrolment and the chosen pension amount. For instance, a 29-year-old opting for a Rs 1,000 monthly pension would contribute Rs 106 monthly over 31 years. This payment structure allows flexibility, encouraging timely contributions while accommodating minor delays. Missed contributions incur minimal penalties, which are added to the accumulated pension corpus, underscoring the scheme's flexibility and emphasis on financial discipline. 

The Atal Pension Yojana was introduced by the Government of India on May 9, 2015, and officially launched on June 1, 2015. This initiative aims to promote voluntary retirement savings by providing individuals with a defined pension plan based on their age at joining and contribution amount. 

Targeting primarily low-income and marginalized workers in the informal sector, the program has become one of the most inclusive and accessible social security schemes in India. The Atal Pension Yojana plays a crucial role in India's social security framework, particularly for its extensive unorganized workforce.

The pension scheme provides a fixed monthly pension ranging from Rs 1,000 to Rs 5,000 for individuals starting at age 60, with contributions determined by the age at enrollment and the selected pension amount. A minimum contribution period of 20 years is mandated. Initially, the government matched 50% of the subscriber's contributions, or up to Rs 1,000 per year, for five years for those who signed up between June 2015 and March 2016, provided they were not income taxpayers or part of any statutory social security programme.

Contributions to the Atal Pension Yojana may be made monthly, quarterly, or half-yearly via auto-debit from your savings bank or post office account. The amount of your contribution is determined by your age at the time of enrollment and the pension amount selected. Payments can be made on any day within the specified period, such as any day of the month for monthly contributions, or in the first month of the period for quarterly or half-yearly payments.

The Atal Pension Yojana ensures continued financial support for the subscriber's family. Upon the subscriber's death, the spouse receives the same monthly pension until their death. If both the subscriber and the spouse pass away, the accumulated pension corpus as of the subscriber’s age of 60 is returned to the nominee.