Atal Pension Yojana Calculator India 2025
Calculate your APY contributions, guaranteed pension, and retirement corpus for secure old-age income.
25
years old
Guaranteed monthly pension after you turn 60 years
How APY Corpus is Calculated
Understanding the mathematics behind your pension fund
Example: 25-Year-Old Aiming for ₹5,000 Monthly Pension
Important Notes
- Guaranteed Returns: Government guarantees the fixed pension amount, regardless of market conditions
- Assumed Rate: Calculations assume 8% annual compounding, actual corpus may vary
- Younger = Lower: Starting early means significantly lower monthly contributions
- Government Support: 50% co-contribution or ₹1,000/year (whichever is lower) for first 5 years
Age vs Monthly Contribution (for ₹5,000 pension)
💡 Tip: A 40-year-old pays almost 7x more than an 18-year-old for the same pension!
Understanding APY: Pension Security for Everyone
Why was APY created for unorganized sector workers?
Think about the millions of Indians who don't work in offices - auto drivers, vegetable vendors, construction workers, small shop owners, domestic helpers. They spend their entire working life earning daily wages, but what happens when they get old? No pension, no retirement benefits, nothing. That's why the government launched APY - to ensure every working Indian can retire with dignity and a guaranteed monthly income.
How does the guaranteed pension actually work?
Unlike investments where returns can go up or down, APY gives you a 100% guarantee. Choose your pension amount - ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month. Pay a small monthly contribution based on your age. After 60, you get that exact pension amount every month for life. No market risk, no uncertainty. Even after you're gone, your spouse gets the same pension. That's true security.
What makes the contribution amounts so affordable?
Here's the beautiful math: if you're 18 and want ₹5,000 monthly pension, you pay just ₹210 per month - that's ₹7 per day! Even if you're 30, it's only ₹577 per month. The earlier you start, the less you pay. For unorganized workers earning ₹10,000-15,000 monthly, setting aside ₹200-500 is far more manageable than trying to save lakhs in other schemes. Small contributions over time build a pension corpus that takes care of you forever.
What happens to your family after you're gone?
This is where APY truly shines. After your death, your spouse doesn't lose the pension - they continue receiving the same amount for their entire lifetime. Both of you are covered. Only after both husband and wife pass away, the entire accumulated corpus goes to your nominee (usually children). So your family is financially protected even when you're not around. That's why adding a nominee is absolutely crucial when you enroll.
Should You Choose APY? Let's Find Out
APY is perfect if you are...
- Working in unorganized sector: Daily wage workers, small business owners, farmers, self-employed individuals without formal pension benefits
- Between 18-40 years old: Younger you join, lower your monthly contribution. Starting at 20 is far better than waiting till 35
- Not paying income tax: Earning below taxable limit, making you eligible for this scheme's benefits
- Want guaranteed pension: Prefer fixed monthly income over market-linked returns after retirement
- Looking for spouse protection: Want to ensure your partner continues receiving pension even after your demise
- Comfortable with long-term commitment: Can contribute regularly till age 60 without needing the money urgently
APY might not be ideal if you...
- Are an income tax payer: Not eligible for APY; consider NPS instead which offers better tax benefits for taxpayers
- Above 40 years old: Not eligible to join APY; look at SCSS, PPF, or other senior citizen schemes
- Need higher returns: APY gives guaranteed pension but corpus growth may be lower than equity mutual funds or NPS
- Want liquidity: Can't easily exit before 60; only allowed in death or terminal disease cases
- Irregular income: Struggle with consistent monthly payments; penalties apply for delayed contributions
- Already have government pension: If you're covered under EPF, EPS, or any statutory pension, better to maximize those schemes
Tax Benefits Under APY
Tax Benefits You Get
- Section 80CCD(1): Deduction up to ₹1.5 lakhs per year (within overall 80C limit)
- Section 80CCD(1B): Additional ₹50,000 deduction exclusively for APY/NPS contributions
- Total Benefit: Save up to ₹46,800 annually in taxes (at 30% tax bracket) if you become taxable later
Tax Implications
- Pension is Taxable: Monthly pension received after 60 is taxable as per your income tax slab
- Lump Sum to Nominee: Corpus paid to nominee after death of both subscribers is tax-free
- Note: Most APY subscribers remain below taxable limit even after receiving pension, so effectively no tax
When to Choose APY in India
APY is Ideal For:
Unorganized Sector Workers
Daily wage workers, farmers, small traders without formal pension
Young Workers (18-25 years)
Start early with minimal monthly contribution for maximum benefit
Family Protection Seekers
Spouse continues pension; nominee receives corpus after both pass away
Low-Income Earners
Affordable monthly contributions as low as ₹42-210 per month
Guaranteed Income Seekers
Fixed monthly pension from age 60 with government guarantee
Consider Alternatives When:
Income Tax Payer
Not eligible for APY; consider NPS for better tax benefits
Above 40 Years Old
Not eligible; explore SCSS, PPF, or tax-saving FDs instead
Want Higher Returns
APY offers guaranteed pension but lower corpus than equity investments
Need Liquidity
No premature exit except death/terminal disease; consider liquid funds
Already Have Pension Coverage
EPF/EPS members should maximize those schemes first
APY vs Other Pension Schemes
| Feature | APY | NPS | SCSS | PPF |
|---|---|---|---|---|
| Eligibility | 18-40 years (non-taxpayers) | 18-70 years (all citizens) | 60+ years | Any age (Indian citizens) |
| Guaranteed Return | Yes (guaranteed pension) | No (market-linked) | Yes (8.2% p.a.) | Yes (7.1% p.a.) |
| Monthly Contribution | ₹42-1,454 (age-based) | Min ₹500/month | One-time (₹1K-30L) | ₹500-1.5L per year |
| Pension/Interest | ₹1K-5K monthly (from 60) | 40% lump sum + annuity | Quarterly interest | Annual interest |
| Tax Benefits | 80CCD (₹1.5L + ₹50K) | 80CCD (₹1.5L + ₹50K) | 80C (₹1.5L) | 80C (₹1.5L) + EEE |
| Spouse Benefit | Yes (continues pension) | Nominee gets corpus | Joint account option | Nominee gets corpus |
| Liquidity | Very low (till 60) | Partial (Tier 2) | Low (5 year lock-in) | Medium (partial from yr 7) |
Tips, Tricks & Things to Watch Out For
Smart Tips
- • Join as early as possible (18-20 years) to minimize monthly contributions
- • Enable auto-debit to avoid missing payments and penalties
- • Keep sufficient balance in bank account before contribution date
- • Update mobile number to receive payment reminders and alerts
- • Add a nominee immediately - crucial for family's financial security
- • Choose pension amount based on future inflation-adjusted needs
- • Combine with spouse's APY to get ₹10,000 total monthly pension
- • Keep Aadhaar and bank account active throughout contribution period
Watch Out For
- • Late payment penalties: ₹1-10 per month based on contribution amount
- • Account freezes after 6 months of non-payment; deactivates later
- • No premature exit except death or terminal disease (with medical certificate)
- • Voluntary exit returns only contributions + interest, minus charges
- • If you become income tax payer later, account may need to be closed
- • Pension is taxable (though most subscribers stay below taxable limit)
- • Cannot change pension amount after enrollment - choose wisely
- • Government co-contribution benefit no longer available for new joiners
How to Open an APY Account
Eligibility Criteria
- Age: Between 18 to 40 years (Indian citizens only)
- Bank Account: Must have an active savings bank account
- Aadhaar: Mandatory for enrollment and KYC
- Mobile Number: For OTP verification and updates
- Tax Status: Should not be an income tax payer
- NRIs: Not eligible to open APY accounts
Documents Required
- Aadhaar Card: Mandatory for e-KYC and age verification
- Bank Account Details: Account number and IFSC code
- Mobile Number: Linked to Aadhaar for OTP verification
- Nominee Details: Name, relationship, date of birth
- Photographs: Usually not required for Aadhaar e-KYC
- Note: Most banks use Aadhaar e-KYC - minimal paperwork needed
Step-by-Step Process
Visit Your Bank or Post Office
Most public and private sector banks offer APY. Visit your nearest branch with your savings account.
Fill APY Registration Form
Provide Aadhaar number, mobile number, choose pension amount (₹1K-5K), and nomination details.
Complete Aadhaar e-KYC
OTP will be sent to your Aadhaar-linked mobile. Enter OTP to complete instant verification.
Set Up Auto-Debit Mandate
Authorize monthly auto-debit from your savings account. Choose debit date (usually 1st of month).
Add Nominee (Mandatory)
Provide nominee's name, relationship, and date of birth. Critical for family's benefit after your demise.
Receive PRAN (Permanent Retirement Account Number)
You'll get a unique 12-digit PRAN via SMS and email. Keep it safe for all future communications.
What Happens After Death - Family Protection
Death Before 60 Years
Spouse's Options
- • Spouse can continue the account by paying same contributions
- • Spouse will receive the guaranteed pension after turning 60
- • Alternatively, spouse can exit and receive accumulated corpus
- • Corpus includes all contributions + interest earned till date
- • No penalties charged in case of subscriber's death
If No Spouse
- • Nominee receives the entire accumulated corpus
- • Lump sum payment includes contributions + interest
- • Amount is tax-free for the nominee
- • Nominee should submit death certificate and ID proof
- • Payment processed within 30-45 days
Death After 60 Years (During Pension)
Spouse Continues Receiving Pension
- • Spouse receives the SAME monthly pension amount
- • Pension continues for spouse's entire lifetime
- • No reduction in pension amount after subscriber's death
- • Pension credited directly to spouse's bank account
- • This ensures lifelong financial security for spouse
After Both Subscribers Die
- • Nominee receives the entire pension wealth (corpus)
- • This is a significant lump sum amount accumulated over years
- • Payment is completely tax-free for nominee
- • Usually children or other family members benefit
- • Three-generation financial security in one scheme
Why Nomination is Absolutely Critical
Frequently Asked Questions
Common questions about Atal Pension Yojana (APY)