₹5,000 monthly pension: How Atal Pension Yojana scheme works and key benefits explained

Atal Pension Yojana (APY), a flagship social security scheme of the central government, has crossed 9 crore total enrolments as of April 21, 2026. In FY 2025–26 alone, over 1.35 crore new subscribers joined, the highest ever since its launch in 2015.

APY aims to provide a complete financial safety net through three key benefits:
● Guaranteed monthly pension between Rs 1,000 and Rs 5,000 after age 60
● Continued pension for the spouse after the subscriber’s death
● Return of the accumulated corpus to the nominee after both pass away

APY offers multiple advantages:
● Guaranteed pension income
● Flexibility to choose minimum pension slabs
● Auto-debit facility for contributions
● Financial security for spouse
● Corpus returned to nominee

The pension amount under APY depends on factors such as:
● Regular monthly contributions
● Expected returns on investment
● Applicable annuity rates

The scheme is available to Indian citizens aged 18 to 40 years. However, individuals who are or have been income taxpayers are not eligible to join the scheme.

APY involves minimal charges:
● Account opening fee: ₹15
● Annual maintenance: ₹15
● Transaction charges: Nil

With a government-backed guarantee and low contribution requirements, APY provides a reliable way to build a fixed pension income, making it especially useful for individuals in the unorganised sector.