The government’s support to bridge the viability gap in the Atal Pension Yojana (APY) is expected to decline due to stronger returns from equity investments, the Pension Fund Regulatory and Development Authority (PFRDA) said on August 25.
Equity Share in APY Rises
Starting April 1, 2025, the equity allocation in APY has been increased from 15% to 25%, aimed at generating higher long-term returns for subscribers. PFRDA Chairperson S. Ramann noted that the scheme added 50 lakh new subscribers in the current financial year and expects 1.3–1.4 crore new enrollments in 2025–26.
“While equities carry higher risk compared to government bonds, they are expected to deliver stronger returns over the long run. With increased market exposure, dependence on government viability gap funding is likely to reduce,” Ramann said at the Atal Pension Yojana Annual Felicitation Programme.
Targeting Informal Sector Workers
The scheme continues to focus on bringing informal sector workers under the social security net, particularly those enrolled under the PM Swanidhi scheme. Ramann emphasized that APY aims to reach 50 lakh PM Swanidhi beneficiaries.
Milestones and Subscriber Growth
Banks have played a crucial role in expanding APY outreach. The program achieved its fastest-ever addition of 50 lakh subscribers in a single financial year, with 46% of new registrations from youth aged 18–25. As of August 21, 2025, total gross enrollments surpassed 8.11 crore, with over 1.17 crore new subscribers in FY 2024–25. Notably, 55% of new subscribers were women, reflecting growing female participation.
Assets and Returns
Since its inception, APY has accumulated over ₹48,000 crore in assets under management, delivering a compound annual growth rate (CAGR) of 9.12%. The scheme’s increasing exposure to equities is expected to enhance long-term growth, reducing the need for government funding support.