Govt viability gap funding for Atal Pension Yojana likely to reduce with higher equity returns: PFRDA chief

Govt viability gap funding for Atal Pension Yojana likely to reduce with higher equity returns: PFRDA chief

Government support to bridge the viability gap in the Atal Pension Yojana (APY) is expected to reduce with higher returns from equity investments, the Pension Fund Regulatory and Development Authority (PFRDA) said on August 25.

“From April 1, the equity class division portion of APY has been increased from 15 percent to 25 percent. We have added 50 lakh new subscribers in this financial year. Expect to add a total of 1.3–1.4 crore subscribers in 2025–2026,” PFRDA Chairperson S Ramann said at the Atal Pension Yojana Annual Felicitation Programme.

He explained that while equities are riskier than government bonds, they are likely to generate better returns in the long run. “In APY, the share of equity assets has recently gone up. Though riskier than govt bonds, equity markets are expected to do well unless there is a black swan event. Growth that we are delivering via APY, NPS, they are getting benefit of market returns. Dependence on viability gap from government likely to go down going ahead due to increased market returns. Expect govt viability gap funding to go down,” Ramann said.

The PFRDA chief added that the scheme aims to bring more informal workers under the social security net, particularly targeting those enrolled under the PM Swanidhi scheme. “Aim that APY should cater to 50 lakh enrolled under PM Swanidhi scheme,” he noted.

Recognising the contribution of banks in driving outreach, Ramann said APY had reached a key milestone in its 10th year. “We have achieved the fastest-ever 50 lakh subscribers in a single financial year, with 46 percent enrolments from youth aged 18–25 years,” he said.

As of August 21, 2025, the total gross enrolments under APY have crossed 8.11 crore, with over 1.17 crore new subscribers joining in FY 2024–25. The scheme has also seen increasing participation from women, with 55 percent of new enrolments in the past financial year coming from female subscribers.

Ramann further highlighted that APY has accumulated more than Rs 48,000 crore in assets under management and has delivered a compound annual growth rate of 9.12 percent since its inception.