PFRDA Considers Increasing Pension Limits Under Atal Pension Yojana

The Pension Fund Regulatory and Development Authority (PFRDA) is reviewing proposals to increase the monthly pension limit under the Atal Pension Yojana, currently set at Rs 5,000. PFRDA chairman Deepak Mohanty Ramann indicated that while discussions are ongoing, no immediate changes are expected due to the complexities involved. The scheme, aimed at providing social security for low-income and unorganised sector workers, has seen significant growth, with subscriber numbers projected to exceed 10 crore in the current financial year. This article delves into the details of the APY and its implications for retirement planning.

By Narendra Chaudhary May 22, 2026, 11:50 IST

PFRDA Reviews Pension Payout Limits

The Pension Fund Regulatory and Development Authority (PFRDA) is currently evaluating proposals to raise the monthly pension cap for the Atal Pension Yojana (APY), as reported by a news agency. At present, the scheme guarantees a maximum pension of Rs 5,000 per month for individuals aged 60 and above. During the APY annual recognition event in New Delhi on May 20, PFRDA chairman Deepak Mohanty Ramann mentioned that this issue is being actively considered, although no immediate changes are anticipated. He stated, “It will take time because these are long-term schemes, and long-term liabilities of the government are intertwined.”

Ramann emphasized that the authority is assessing requests for an increase in the pension limit under the Atal Pension Yojana. He indicated that consultations with the Department of Financial Services (DFS) will occur, and a comprehensive evaluation will be conducted before any decisions are made. “The authority is continuing to evaluate and work on the demand,” he noted. However, he also warned that the review process is complicated due to the financial obligations involved for the government, stating, “It is too premature to arrive at any conclusion at this stage.”

This development comes amid growing conversations about retirement planning and social security benefits for workers in the informal sector.

Understanding the Atal Pension Yojana

Launched in 2015, the Atal Pension Yojana aims to establish a comprehensive social security system for citizens, particularly targeting low-income and unorganised sector workers. The PFRDA manages this scheme under the National Pension System (NPS) framework. The program is available to individuals aged 18 to 40 years who hold Aadhaar-linked bank accounts and do not pay income tax. To qualify for pension benefits after reaching 60, subscribers must contribute regularly for a minimum of 20 years.

Depending on their contributions, subscribers can receive a guaranteed pension ranging from Rs 1,000 to Rs 5,000 monthly. Upon the subscriber's death, the pension is passed on to their spouse, and the accumulated funds are returned to the designated nominee. Additionally, the scheme provides tax benefits under Section 80CCD of the Income Tax Act, 1961, allowing individuals to claim deductions up to Rs 1.5 lakh, plus an extra exemption of Rs 50,000 under Section 80CCD(1B).

Growth of APY Subscriber Base

During the same event, Ramann noted the significant growth in the APY subscriber base, projecting that the total number of subscribers could exceed 10 crore in the current financial year. Data indicated that the subscriber count reached 8.96 crore by the end of FY26, up from 7.61 crore the previous year, with a record addition of 1.35 crore subscribers during this period. “With an annual growth rate of 18 percent, we anticipate surpassing the 10 crore subscriber mark in FY27,” Ramann stated. He also highlighted a notable increase in participation among individuals aged 18 to 25, reflecting a growing awareness of retirement planning among younger generations. According to PFRDA statistics, the National Pension System (NPS) has also shown steady growth, with total subscribers reaching 2.17 crore by the end of FY26 and the total pension corpus amounting to Rs 15.95 lakh crore.