Atal Pension Yojana – Benefits

Let us know more about this government scheme – Atal Pension Yojana.

One has to work hard to make his/her retired life safe and happy right from day one. A person must have enough savings to survive the time they live. But without a stable pension how is this possible?

As we all are aware that in India there is no social security pension for the elders or ill. But to take care of this situation the government has introduced a few pension schemes where on a deposit of a small amount monthly basis, great benefits can be reaped.

This is very beneficial for those working in the unorganized sector. The skilled and unskilled labor find it very difficult to make both ends meet after they retire. So, this Atal Pension yojana Scheme has been introduced to help this section of the working class.

What is this Atal Pension Yojana?

The government of India has introduced the National Pension Scheme a few years back. But this benefited only those who had a fixed salary from an employer.

To take care of those in the unorganized sector by encouraging them to save voluntarily for themselves, this NPS scheme was further extended in a new way of the Atal Pension Scheme ( also called as Atal Pension Yojana) .

Around 88% of the working class of India falls under this section, who do not have any fixed pension. There was an Initiation of Swavalamban Scheme in 2011, but this proved very unsure.

The benefits were a very different , it was not a fixed slab. So to clear the ambiguity the Atal pension scheme was introduced. There is a fixed amount of benefit depending upon the contribution being made.

Who can join the Atal Pension scheme?

The minimum age of joining this Atal pension scheme has been fixed at 18 years while the last age described for joining this scheme is 40 years.

This has been done so that the person who benefits from Atal Pension Yojana shall be contributing at least 20 years of their life or more. The more a person contributes the more they shall reap the benefits.

This scheme was started on June 1, 2015. The fixed monthly benefits shall vary from rupees 1000 to rupees 5000. But the benefits of this scheme are yet to be finalized.

A young person can contribute less and reap the same benefits as a senior member. The contribution of a senior member will be more. The time for which an early joiner will be more.

So more or less the same amount of money will be saved by the contributors to reap the pension of the scheme. This scheme can be however enjoyed by those who do not file income tax, as their income is not taxable and have not been enrolled in any other social security scheme.

How does Atal Pension Yojana work?

There is a fixed amount of money the person availing this scheme has to deposit each month.

The government too paid 50% of the contribution or 1000 rupees annually for the first five years to make a base saving.

After this, the contribution of the subscriber shall continue for at least another 15 years more to complete the 20 years.

The returns shall be reverted through PRAN. This is the record-keeping way of the government to ensure a single person does not take benefit from more than one scheme at a time. T

he minimum age of a person to be enrolled can be 18 years while the maximum can be 40 years. The final exit age when the person shall receive a pension is 60 years.

This scheme has been designed for the workers of the unorganized sector who do not have a stable and fixed income.

The functioning of Atal Pension Yojana

Firstly the eligible person must hold a savings account. From this an auto-debit if a monthly deduction towards the scheme is decided. But the account holder must maintain a valid balance for this monthly deduction. Else it will lead to default.

Repeated defaults shall lead to foreclosure of the scheme account and the contribution benefits will be forfeit.

Aadhar of the account holder along with that of the spouse or the nominee is a must. The nominee is fixed in beginning to avoid any last-minute disputes at the time of receiving the pension. Though the contributor has the freedom to increase or decrease the amount of contribution being made monthly basis.

However, this change can be made only once a year in the month of April, the first month of a financial year. This has been done to make the calculations nice and clear. There shall be no ambiguity in the final amount to be received.

A detailed table has been given on the site of the scheme for the amount of monthly contribution and the amount to be received as a pension depending on the number of years the contribution is being done.

NPS is the main governing body of this scheme. They control the joining and the pension giving facility along with the PFRDA for record-keeping.

How do users get information about their contribution to Atal Pension Yojana?

The subscribers are given timely information regarding their contributions towards the scheme. The balance of the account and the contribution credits are given by the SMS.

The non-financial details like the address and the phone number can be changed on the will of the contributor when informed in time. The nominee’s name too can be changed if required.

The exit is allowed only at the age of 60 years. The premature exit is not allowed. It is allowed only in case of death of the subscriber or the holder having a terminal disease.

Atal pension yojana benefits

Retirement Benefits

Based on the amount contributed towards the pension yojana, pension amount is determined.  Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs. 5,000 based on amount invested.

Death Benefits

On the unfortunate event of death of the contributor, the pension amount automatically vests to the spouse of the contributor who is the default nominee.

Tax Benefits

Tax benefits can be availed under Section 80CCD  (1B), up to Rs50,000 . This is above the Rs. 1.5 lakhs. 

Atal Pension Yojana Calculator

Do you know that you can actually calculate your pension amount . You can go to link below from NPS trust to calculate this. Information like you age, number of years of contribution, amount contributed, annuity rate etc is needed to calculate the pension amount.

Atal pension yojana return calculator

Click on the below link of NPS trust

Atal pension yojana HDFC

Please find the link below of HDFC bank for this scheme.

Atal pension yojana SBI

Atal Pension Yojana Chart

Click on the link below for detailed chart:


This Atal Pension Scheme is an effort by the Indian government to give the people working in the unorganized sector a safe and happy retirement.

A healthy and sufficient income for retirement is every person’s dream. And if he/she is willing to take a few small steps to improve their financial condition later then they can get help from the government by the means of such pension schemes.

This scheme helps the people habituate to save on a regular basis for a safer and better future.

Atal pension yojana has worked really well. There are news recently on moneycontrol portal which you will find interesting – Read here

Check all other government schemes on IndiaCareerAdvice

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