How Atal Pension Yojana is helping women claim long-term pension security

For millions of women who have spent lifetimes in unpaid labour or informal work, the idea of a guaranteed pension was once unimaginable. Today, they form 48% of all Atal Pension Yojana (APY) subscribers in India, reshaping a scheme designed for the country’s most vulnerable workers, according to a Lok Sabha reply on the scheme dated December 1.

Launched by the Pension Fund Regulatory and Development Authority (PFRDA) in 2015, Atal Pension Yojana is a government-backed pension scheme aimed primarily at low-income and informal-sector workers who lack formal retirement benefits. 

Under APY, individuals aged 18–40 (who are non-income-taxpayers) contribute modest amounts monthly, quarterly or half-yearly from their bank or post office savings account. In return, they receive a fixed monthly pension, anywhere between Rs 1,000 and Rs 5,000 after they turn 60, with guaranteed support for their spouses and return of the accumulated corpus to nominated heirs.

According to the Lok Sabha’s statement, Bihar alone counts over 42 lakh women who have signed up for APY. As of 30 November 2024, the state had over 63.59 lakh registered subscribers under APY, placing it third among Indian states by total registrations last year, according to media reports; 44% of those subscribers were women. 

As of April 2025, women accounted for approximately 48% of India’s total APY subscriber base.

Recent data from PFRDA reflects this clear jump in women’s participation as well. In the fiscal year 2024–25 alone, PFRDA data finds that 55% of all new APY enrollees were women, demonstrating a visible increase in gender balance in what was traditionally a male-dominated space.

Across the informal sector, wage-earning jobs tend to go to men, with women more often pushed into unpaid roles or low-paid, irregular work.

Women in informal work often lack independent income for regular contributions, and when APY launched a decade ago, many of them did not have bank accounts, which are mandatory for auto-debits. 

A PFRDA and NITI Aayog financial literacy assessment from 2016 - 2019 found that women consistently scored lower on pension literacy, long-term savings, and awareness of formal financial instruments. Early APY enrolment campaigns often reached male workers first via bank mitras, labour groups, and male-dominated industries.

The financial inclusion behind rising women subscribers

A major enabler could be the widespread expansion of formal bank-account ownership among women, driven largely by the Pradhan Mantri Jan Dhan Yojana (PMJDY). Since its launch in 2014, PMJDY has dramatically shifted the financial inclusion landscape. As of 2025, over 55% of PMJDY accounts were held by women.

A 2024 working paper analysing PMJDY (‘Banking on Her’) shows that the programme increased women’s bank-account ownership significantly,  especially in historically unbanked and backward districts, thereby levelling a critical precondition for any contribution-based pension plan like APY. 

A 2025 government-reported Financial Inclusion Index also shows improvements across access, usage and quality of financial services, signalling a broader shift in infrastructure and outreach that benefits rural women and informal-sector workers.

More women may be joining the Atal Pension Yojana, but longstanding barriers continue to affect their ability to build real pension security.

Over the past few years, schemes like PMJDY and the JAM (Jan Dhan–Aadhaar–Mobile) framework have made it far easier for women to open and use bank accounts. These accounts are now the main channel for government transfers, subsidies and welfare payments, helping women become comfortable with formal financial systems.

As women handle their own savings and receive more regular financial flows, their interest in products like APY has grown. Studies by Women’s World Banking, ISID and the Social Policy Research Foundation show that gains in financial literacy have made pensions more understandable and accessible to women who once relied mostly on informal savings.

For many low-income and informal-sector women, APY is increasingly seen as a practical way to secure at least some income in old age.

Why increased enrolment doesn’t equal long-term security

However, higher enrollment does not guarantee long-term security. APY provides a fixed monthly pension between Rs 1,000 and Rs 5,000, and this amount is not linked to inflation. As prices rise, the real value of the pension falls, raising concerns about how much protection it can offer in the long run.

Women in informal work also face challenges in contributing regularly. Their incomes are often irregular, and many still have limited say over household finances. Research by several financial-inclusion organisations shows that these structural factors continue to limit women’s ability to make steady pension contributions.

Another issue is the rule introduced in October 2022 that bars new income-tax payers from enrolling in APY. For women who are slowly moving into higher income brackets, this rule can cut them off from APY just as their economic situation begins to improve.

A mixed picture

Taken together, the trends show a system in transition. Women are entering APY in far greater numbers because banking access, financial literacy and welfare pipelines have improved. But the deeper inequalities that shape their work, incomes and decision-making power still affect how much long-term security APY can actually provide.

In short, access may have expanded, but turning that access into lasting financial security will require addressing the structural barriers that women continue to face.