Atal Pension Yojana (APY) 2026: Pension, Contribution Chart & Eligibility
Last verified: June 2026. Investments carry risk and rules/rates change — verify current details before investing. General information, not investment advice.
The Atal Pension Yojana (APY) is a government-backed pension scheme aimed at giving every Indian a guaranteed monthly pension in old age — for as little as ₹42 a month if you start young. Here is how it works in 2026.
What APY offers
APY gives a government-guaranteed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 from age 60, based on the pension level you choose and contribute towards. On the subscriber’s death the spouse continues to receive the pension, and the accumulated corpus goes to the nominee.
Eligibility
- Age 18 to 40 (so you contribute for at least 20 years).
- A savings bank or post-office account for auto-debit.
- Since 1 October 2022, anyone who is or has been an income-tax payer is not eligible to join.
How much you contribute
The earlier you start, the less you pay. Indicative monthly contributions:
| Join age | For ₹1,000 pension | For ₹5,000 pension |
|---|---|---|
| 18 | ₹42 | ₹210 |
| 40 | ₹291 | ₹1,454 |
Contributions auto-debit monthly, quarterly or half-yearly until age 60.
Who it suits
APY is ideal for those in the unorganised sector and anyone (under 40, non-taxpayer) wanting a small, guaranteed pension floor. Higher earners typically pair retirement planning with the NPS and equity SIPs for larger corpora.
Worked example
A 25-year-old choosing the ₹5,000 monthly pension contributes a few hundred rupees a month until 60; joining at 35 for the same pension costs about two and a half times as much each month. Starting early keeps contributions small. The spouse receives the same pension after the subscriber’s death, and the nominee gets the accumulated corpus after both.
Who can join
Indian citizens aged 18–40 with a savings account. Since 1 October 2022, anyone who is or has been an income-tax payer cannot open a new APY account. The guaranteed pension of ₹1,000–₹5,000 does not rise with inflation, so treat it as a base layer, not your only retirement income.
Reviewed October 2026. Card and product terms change — confirm current details with the provider.
FAQs
Can a taxpayer join APY?
No — since 1 October 2022, income-tax payers are not eligible to open new APY accounts.
What is the maximum pension under APY?
₹5,000 per month from age 60, depending on your chosen level and contributions.
Who can join APY?
Indians aged 18–40 with a bank account; income-tax payers have been ineligible since October 2022.
What happens after the subscriber dies?
The spouse continues to receive the pension; the corpus is then paid to the nominee.
How little can I contribute?
As low as ₹42 a month for a ₹1,000 pension if you join at age 18.
