Atal Pension Yojana (APY)

Atal Pension Yojana (APY) is a government-backed pension scheme launched in 2015 by the Government of India. The scheme aims to provide a sustainable pension system for the unorganized sector workers, who often do not have access to any formal pension scheme. The APY scheme is a part of the government's broader social security initiatives to provide financial stability to the people of India.

The APY scheme is a voluntary, contribution-based pension scheme that is administered by the Pension Fund Regulatory and Development Authority (PFRDA). Under the scheme, the subscribers can contribute a fixed amount of money per month towards their pension fund, depending on the age at which they join the scheme and the pension amount they wish to receive after retirement.

The APY scheme is open to all Indian citizens between the age of 18 and 40 years, who have a bank account and are not members of any other statutory social security scheme. The scheme provides a fixed pension amount ranging from Rs. 1,000 to Rs. 5,000 per month, depending on the contribution made by the subscriber and the age of entry.

The contributions made towards the APY scheme are invested in the government-approved pension fund, which is managed by professional fund managers appointed by the PFRDA. The investment returns on the pension fund are based on the market performance of the underlying assets, which may include equity, debt, and government securities.

One of the significant advantages of the APY scheme is that it provides a guaranteed pension amount to the subscribers after their retirement. The pension amount is directly credited to the bank account of the subscriber on a monthly basis, ensuring a regular income stream during their retirement years.