Sustained economic growth to boost Atal Pension Yojana returns: PFRDA

New Delhi: Sustained growth in the Indian economy expected for the next 15-20 years will increase market returns under the government's flagship Atal Pension Yojana (APY), Pension Fund Development and Regulatory Authority (PFRDA) chairperson S Ramann said on Monday.

He said an increase in equity investments from the APY contributions to 25% (from 15% earlier) would help enhance market returns by leveraging India's economic growth, adding that if market returns are good, then dependence on viability gap funding from the government would also reduce.

APY, launched in May 2015, manages assets of more than ₹48,000 and has delivered a compound annual growth rate of 9.12% since inception. Ramann described the scheme as both robust and sustainable.


Since April 1 this year, up to 65% of APY contributions can be invested in government securities, up to 45% in debt instruments, up to 10% in short-term debt instruments and up to 25% in equities.

APY recorded 11.7 million enrolments in 2024-25, marking the third consecutive year of more than 10 million enrolments.