What are the rules for Atal Pension Yojana?

The key rules and guidelines for Atal Pension Yojana (APY) are as follows:

• The minimum age to join APY is 18 years, and the maximum age is 40 years.
• The contribution amount depends on the pension amount chosen - ₹1000, ₹2000, ₹3000, ₹4000 or ₹5000 per month.
• Subscribers have to contribute until they turn 60 years old to get a guaranteed minimum pension. Early exit is possible under specific conditions.
• Subscribers can pay contributions monthly, quarterly or half-yearly. Banks collect additional charges for delayed payments.
• To receive a monthly fixed pension between ₹1,000 and ₹5,000 after retirement, a subscriber joining at age 18 needs to contribute only ₹42 to ₹210 per month. However, if the subscriber starts at age 40 for the same pension amount, the required monthly contribution is far higher - between ₹291 and ₹1,454.
• If the subscriber dies before 60 years of age, the accumulated corpus is given to the spouse, who can continue the scheme or exit. After the death of both, the nominee gets the corpus.
• PFRDA regulates and monitors the invested pension corpus as per approved investment guidelines.
• If no contribution is made for 6 months, the account is frozen. After 12 months of no payment, it is deactivated, and after 24 months, it is closed.
• Subscribers availing other statutory pension benefits or paying income tax are not eligible for government co-contribution.
• Once enrolled, a change of pension amount is not allowed. Only the frequency of contribution payments can be changed.

To know more on how your pension is calculated, you may use the Atal Pension Yojana calculator online.