APY Calculator

The Atal Pension Yojana (APY) Calculator is a simple online tool that helps you estimate the monthly contribution required to receive your desired pension after retirement. It is free to use and provides instant results based on your age and pension goals.

What is Atal Pension Yojana (APY)?

The Atal Pension Yojana is a government-backed national pension scheme primarily aimed at workers in the unorganised sector. It encourages individuals without a formal pension plan to save small amounts during their working years and secure a guaranteed monthly income after retirement.

Key points:

• Eligibility Age: 18-40 years
• Contribution Period: Minimum 20 years, until age 60
• Pension Amount: Guaranteed monthly pension ranging from ₹1,000 to ₹5,000 depending on contributions
• Flexibility: Subscribers can choose the pension amount and adjust it once a year (in April)
• Tax Benefits: Contributions eligible for deduction under Section 80CCD (1) up to ₹1.5 lakh and an additional ₹50,000 under Section 80CCD (1B)

Early enrollment means lower monthly contributions. The APY emphasizes savings for the unorganised sector but is open to any eligible individual.

What is the APY Calculator?

The Atal Pension Yojana calculator is a web-based tool that calculates:

• Monthly Contribution: Amount you need to invest each month to achieve your desired pension.
• Contribution Years: Duration of your contributions based on current age and retirement age.
• Total Contribution: The total amount invested over the years.

It requires only two inputs:

• Age: Your current age
• Pension Amount Expected: Choose from ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000

How to Use the APY Calculator

Using the APY calculator is easy:

• Enter your current age.
• Select your desired monthly pension.
• The calculator will instantly provide:
  • Monthly investment required
  • Contribution period
  • Total contribution

Example:

• Age: 20 years
• Desired Pension: ₹3,000/month

Results:

• Monthly Contribution: ₹150
• Contribution Period: 40 years
• Total Contribution: ₹72,000

This means if the subscriber invests ₹150/month for 40 years, they will receive ₹3,000/month from age 60 onwards.

Benefits of APY Calculator

• Simple to Use: User-friendly interface; only age and pension amount are required.
• Quick & Accurate: Estimates monthly contributions in seconds.
• Investment Planning: Helps plan retirement savings by showing required monthly contributions and expected pension.

Features of Atal Pension Yojana

• Minimum & Maximum Contribution: Depends on age and pension plan chosen.
• Contribution Frequency: Monthly, quarterly, or semi-annual contributions allowed.
• Auto-Debit Option: Bank account-linked automatic deductions to avoid missed payments.
• Investment Tenure: Calculated based on the age at entry.
• Early Withdrawal: Not permitted except in case of death or terminal illness.
• Pension Start Age: 60 years
• Spouse's Pension: Spouse or nominee receives the pension in case of subscriber's death.
• Tax Benefits: Contributions eligible under Section 80CCD of the Income Tax Act, 1961.

Top Benefits of Atal Pension Yojana

• Regular Income Post-Retirement: Provides guaranteed pension for basic financial needs.
• Flexible Pension Amount: Can be increased or decreased once a year.
• Government-Backed Security: Guaranteed pension with minimal risk.
• Focus on Unorganised Sector: Encourages savings among workers without formal pensions.
• Nomination Facility: Choose a nominee to receive benefits in case of death.
• Tax Benefits: Contributions eligible for deductions under Sections 80CCD(1) and 80CCD(1B).

Who Can Invest in APY?

Eligibility criteria:

• Must be an Indian citizen
• Age: 18-40 years
• Minimum contribution period: 20 years
• Must have a bank account, Aadhaar number, and mobile number
• Individuals enrolled in the Swavalamban Yojana are automatically transferred to APY

How to Invest in APY

1. Visit a nationalised bank branch offering APY.
2. Fill out the APY registration form (available in multiple languages including English, Hindi, Bengali, Gujarati, Tamil, Marathi, Kannada, Odia, Telugu).
3. Provide Aadhaar number, bank account details, and mobile number.
4. Submit a photocopy of Aadhaar.
5. Initial contribution is debited from your linked bank account.
6. Bank issues an acknowledgement (PRAN number).
7. Future contributions are auto-debited, and confirmation messages are sent.