SYLLABUS

GS-2: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.

Context: Recently, the Union Cabinet approved the continuation of the Atal Pension Yojana (APY) up to FY 2030-31, including extended funding support for promotional and developmental activities, as well as gap funding.

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• The scheme will continue up to 2030-31 with Government support for:

• Promotional and Developmental activities to expand outreach among unorganised workers including awareness and capacity building.
• Gap funding to meet viability requirements and ensure sustainability of the scheme.

• Ensures old-age income security for millions of low-income and unorganised sector workers.

• Enhances financial inclusion and supports India’s transition to a pensioned society.

• Strengthens the vision of Viksit Bharat @2047 by providing sustainable social security.

About Atal Pension Yojana (APY) 

• Launch: APY was launched on 9th May, 2015, to provide old-age income security to workers in the unorganised sector.

• Progress: As of 19th January, 2026, over 8.66 crore subscribers have been enrolled, making APY a cornerstone of India’s inclusive social security framework.

• Need for Extension: Sustained government support is essential for continued awareness, capacity building, and bridging of viability gaps to ensure the scheme’s sustainability.

Benefits of Atal Pension Yojana (APY)

• APY is a voluntary, periodic contribution-based pension system, under which the subscriber would receive the following benefits:

(i) Central Government guaranteed minimum pension amount:

• Each subscriber under APY shall receive a Central Government guaranteed minimum pension of Rs. 1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month, after the age of 60 years until death.

      (ii) The Central Government guaranteed a minimum pension amount to the spouse:

• After the subscriber’s demise, the spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse.

      (iii) Return of the pension wealth to the nominee of the subscriber:

• After the demise of both, the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till the age of 60 years of the subscriber.

Eligibility for APY

• Open to all Indian citizens with a savings bank account.
• Age limit: Minimum 18 years, maximum 40 years.
• Income-tax payers are not eligible to join APY.

Exit and Withdrawal

• On Attaining 60 Years: 100% of the pension wealth is annuitized for the monthly pension.

• Death Before 60: The spouse has the option to either continue the account for the remaining vesting period or withdraw the entire accumulated corpus.

• Voluntary Exit: Permitted before age 60, but only the subscriber's contributions and earned interest (minus maintenance fees) are refunded. Any government co-contribution and its interest are forfeited