The Atal Pension Yojana (APY) is one of the most popular social security schemes introduced by the Government of India to support workers in the unorganized sector with a guaranteed pension after retirement. Under this scheme, subscribers contribute a fixed amount regularly and start receiving a monthly pension after turning 60.

However, many people are unaware that exiting the scheme before the age of 60 is not easily allowed. The premature withdrawal option comes with strict rules, specific eligibility conditions, and a detailed verification process.

Subscribers can withdraw from APY before the age of 60 only in exceptional circumstances, such as:

✔ Severe or life-threatening illness
✔ Permanent disability
✔ Death of the subscriber
✔ Other special situations defined by regulatory authorities

In such cases, the subscriber does not receive the full pension benefits. Instead, only their own contributions and the earned interest are refunded. The government’s co-contribution is not returned in most cases.

If the APY subscriber passes away before turning 60:

• Their spouse is eligible to continue the scheme and receive the pension at 60
• Or, the spouse/nominee may exit the scheme and claim the accumulated contributions

This ensures that the financial support aimed under the scheme is preserved for the dependent family members.

A subscriber may request voluntary exit from APY due to financial hardship or personal reasons. But in this situation:

• Only subscriber’s contribution + interest is refunded
• Government’s contribution is forfeited

The rule discourages early exit to ensure long-term pension planning and financial discipline.

To apply for premature exit, the subscriber or nominee must submit an application to their bank or pension fund manager along with:

• APY account details/passbook
• Valid identity proof
• Medical certificate (if exit is due to serious illness or disability)
• Death certificate (if applicable)
• Nominee proof documents

Once the documents are verified, the refund is processed directly into the linked bank account.

Financial experts point out that APY is designed to secure retirement income for low-income workers who may not have any pension source later in life. Early withdrawal defeats the primary purpose of the scheme.

They advise that unless there is a major unavoidable situation, subscribers should continue contributing until 60 to receive:

✔ A steady lifelong pension
✔ Financial independence in old age
✔ Support for spouse after the subscriber’s death

The Atal Pension Yojana offers assured retirement income, making it a strong pillar of financial security in later years. Since premature exit leads to reduced benefits, subscribers should carefully evaluate their decision and thoroughly understand all rules before opting out.

For long-term stability and peace of mind, staying invested until 60 remains the best choice.