Definition
Atal Pension Yojana (APY)
APY is a government pension scheme aimed at workers in the unorganised sector, guaranteeing a fixed monthly pension after 60.
Atal Pension Yojana (APY) is a government-backed scheme that guarantees a fixed monthly pension (chosen from a few defined levels) starting at age 60, based on the contribution amount and the age at which you join. The earlier you start, the lower the monthly contribution needed.
It is targeted at the unorganised sector and lower-income workers, with contributions auto-debited from a bank account. On the subscriber's death, the spouse continues to receive the pension, and the accumulated corpus passes to the nominee thereafter.
APY provides a simple, guaranteed pension safety net for those without formal pension cover, though the pension amounts are modest and should be supplemented where possible.
Related terms
- EPS (Employees' Pension Scheme)EPS is a pension scheme for salaried employees, funded from the employer's EPF contribution, that provides a monthly pension after retirement.
- AnnuityAn annuity is a financial product that pays a regular income stream, typically for life, in exchange for a lump sum — used mainly to secure income in retirement.
- NPS (National Pension System)The National Pension System is a government-backed, market-linked retirement scheme regulated by PFRDA that builds a corpus over your working life and converts part of it into a pension.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.