APY Calculator

Atal Pension Yojana Calculator is a tool that estimates the monthly investment that one has to make currently to get the desired pension amount post-retirement. The APY calculator is a simple tool which is available online and also is free to use.

What is Atal Pension Yojana?

Atal Pension Yojana is an initiative of Government of India to include the unorganized sector under the social security scheme. This voluntary pension scheme was launched in 2015 and is regulated by Pension Funds Regulatory Authority of India (PFRDA). Also, the minimum age of joining is 18, and the maximum age of joining is 40. Under this scheme, the contribution period should be a minimum of 20 years, and investors have to make contributions until they turn 60. Furthermore, they can receive a guaranteed pension per month at the age of 60. However, the fixed monthly pension is in the range of INR 1,000 – INR 5,000 based on the contributions made.

Also, The contributions will be lower if the investor joins the scheme early. Moreover, all individuals are eligible to invest in this. However, the focus is on the unorganized sector. Individuals can choose the fixed pension that they want to receive post-retirement, and also the contribution is dependent on that. Also, subscribers can increase or decrease the pension amount. However, this facility is available only once a year in April.

In case the subscriber’s default on a payment, they have to pay the penalty. Also, the penalty ranges from INR 1 – INR 10 based on the contribution. Furthermore, if the subscriber defaults for six months, the account will be frozen, after 12 months the account will be deactivated, and after 24 months the account will be closed. Investors can avail tax benefits up to INR 1.5 lakhs under Section 80CCD (1) and also, up to INR 50,000 under Section 80CCD (1B).

What is an APY Calculator?

Atal Pension Yojana Calculator is a simple online tool that estimates the pension and also the lump sum amount that a subscriber can expect at the age of 60.

The calculator has the following inputs:

  • Age: The current age of the investor
  • Expected Pension Amount: Subscribers can choose the pension amount. Also, investors have five options to choose from, and the pension amount ranges from INR 1,000 – INR 5,000.

Upon entering the above inputs, the calculator gives the following outputs:

  • Monthly investment amount: It is the amount of investment one has to invest every month to get the desired pension amount.
  • Years of contribution: It is the number of years the subscriber will contribute to the scheme.
  • Total contribution: It is the sum total of all monthly investments made by the investor.

How to use an Atal Pension Yojana Contribution Calculator?

The APY Calculator is a simple, and also a user-friendly tool. All one has to do is enter their current age along with the desired monthly pension amount. And the calculator will estimate the monthly investment, years of contribution and total contribution.

Let’s take an example of an APY subscriber who is currently 20 years old. Also, he wants INR 3,000 per month as the pension amount post-retirement. He can use an APY calculator to estimate the monthly contribution amount.

Inputs

Following are the inputs in the calculator:

  • Age of the investor: 20
  • Pension amount: INR 3,000

Outputs

Upon entering the above inputs, the calculator will give the following outputs:

  • Monthly investment amount: INR 150
  • Years of contribution: 40 years
  • Total contribution: INR 72,000

Hence, the subscriber has to invest an amount of INR 150 on a monthly basis for a period of 40 years. Also, his total contribution will be INR 72,000. Furthermore, from the age of 60, he will receive INR 3,000 per month.

Atal Pension Yojana Contribution Chart

The contribution amount is calculated based on the investor’s age and also the pension amount selected. Furthermore, investors can choose to contribute on a monthly basis. They can also invest in quarterly and half-yearly intervals. The following table shows the monthly contributions that investors have to make at different ages for different pension amounts

  Fixed Pension of INR 1,000Pension of INR 2,000Fixed Pension of INR 3,000Pension of INR 4,000Fixed Pension of INR 5,000
 Return to the nominee (INR)1.7 lakhs3.4 lakhs5.1 lakhs6.8 lakhs8.5 lakhs
Age of EntryInvestment TenureMonthly contribution (INR)Contribution per month (INR)Monthly contribution (INR)Contribution per month (INR)Monthly contribution (INR)
18424284126168210
19414692138183228
204050100150198248
213954108162215269
223859117177234292
233764127192254318
243670139208277346
253576151226301376
263482164246327409
273390178268356446
283297194292388485
2931106212318423529
3030116231347462577
3129126252379504630
3228138276414551689
3327151302453602752
3426165330495659824
3525181362543722902
3624198396594792990
37232194366548701087
38222404807209571196
392126452079210541318

Benefits of using an Atal Pension Yojana Contribution Calculator

Following are the benefits of using the APY Calculator:

  • Simple to use: The calculator is a simple, and also a user-friendly tool. One has to enter their age and also desired monthly pension amount to estimate their monthly contribution.
  • Fast and accurate calculation: The calculator is accurate and also estimates the monthly contribution within seconds.
  • Investment planning: APY calculator will help investors plan their retirement and also current finances. Furthermore, they will know how much they have to set aside each month from their current income. Moreover, they will also know how much to expect by investing in this scheme post-retirement.

Features of Atal Pension Yojana

Following are the features of Atal Pension Yojana:

Minimum Investment Amount

The minimum investment amount for Atal Pension Yojana differs on the basis of the age of the investor and also the pension plan. For example, if a subscriber whose age is 25 years wants a monthly pension of INR 3000 post-retirement, then the monthly contribution they have to make now is INR 347.

Maximum Investment Amount

The maximum investment also differs on the basis of the investor’s age and the pension plan they choose.

Tenure

Tenure of an investment is the duration for which the investors have to make a contribution towards the scheme. It depends on when the investor starts the APY scheme. For example, if an individual is 45 years old and the maturity tenure for them is 15 years. Similarly, if an individual is 30 years, the maturity tenure for them is 30 years.

Frequency of Contribution

Investors can also choose the frequency of their contribution. It can be monthly or quarterly or half-yearly.

Auto Debit Option

APY offers an auto-debit option for monthly contributions. One can link their bank account and also have their monthly contributions auto debited. Furthermore, one must ensure that the bank account has sufficient balance to avoid any penalties.

Age of Pension

With the Atal Pension Yojana, one can start receiving their pension when they turn 60 years old.

Pension Amount

Investors are eligible to get a guaranteed pension amount from their Atal Pension Yojana deposits. Also, the fixed pension amount can be INR 1,000, INR 2,000, INR 3,000, INR 4,000 and INR 5,000 that the investor wishes to earn post-retirement.

Premature Withdrawal

Atal Pension Yojana does not allow any premature withdrawals. However, if the investor dies or suffers from a terminal illness, they can prematurely withdraw their investment.

Pension for Spouse

The account holder’s spouse can claim for pension in the event of their death. Also, the nominee will receive the benefits of the Atal Pension Scheme.

Tax Exemption

Contributions towards Atal Pension Yojana qualify for tax exemption under Section 80CCD of the Income Tax Act, 1961. Also, as per Section 80CCD (1), the maximum exemption is 10% of the individual’s gross total income (limit of INR 1,50,000). Furthermore, an additional exemption for INR 50,000 is available under Section 80CCD (1B).

Benefits of Atal Pension Yojana

Following are the benefits of Atal Pension Yojana account:

  • Source of income during old age: The Atal Pension Scheme provides a steady income source to the depositors after they reach the age of 60. Therefore, one can meet their basic financial requirements with the pension amount.
  • Pension Amount: Once every year, the depositor can increase or decrease their pension amount.
  • Government Scheme: The APY scheme is a government-backed scheme, and hence has no risk of loss. Furthermore, the depositor is assured of pension. Atal Pension Yojana scheme was launched in 2015 and is regulated by Pension Funds Regulatory Authority of India (PFRDA).
  • Unorganised Sector: The main aim of this pension scheme was to tap the unorganised sector and provide a regular source of income for them during later years.
  • Nomination Facility: The pension account allows the depositor to choose and also nominate a beneficiary. In case of death of the APY account holder, the nominee will receive the benefits of the pension account.
  • Tax Benefit: The contributions to APY are eligible for tax exemption under Section 80CCD of the Income Tax Act, 1961.

Who should invest in the Atal Pension Yojana?

To open the Atal Pension Yojana account, one should meet the following eligibility criteria:

  • Should be a Citizen of India
  • Age limit: The entry age is 18 years. Also, the maximum entry age is 40 years.
  • The contribution period should however be a minimum of 20 years.
  • Must have an Aadhaar Number and also a mobile number
  • Should have a valid bank account.
  • Also, individuals under the Swavalamban Yojana will automatically be migrated under Atal Pension Yojana scheme.

How to invest in the Atal Pension Yojana?

All nationalised banks offer APY schemes. Therefore, one can open the APY account by visiting the nearest branch. The following steps shall help one to invest in Atal Pension Yojana:

  • Completely fill and submit the APY registration form at the nearest bank. The APY forms are available at the bank and also online. Furthermore, the forms are available in multiple languages, such as English, Hindi, Telugu, Tamil, Kannada, Bangla, Gujarati, Marathi, and Odia.
  • Provide mobile number, bank account number, and also Aadhaar number.
  • Submit a photocopy of the Aadhaar card.
  • The first contribution (investment amount) will be deducted from the bank account that is linked at the time of account opening.
  • Also, the bank shall issue an acknowledgement number or PRAN number.
  • Furthermore, all subsequent monthly contributions shall be auto-debited from the bank account.
  • Once the application is approved, a confirmation message is sent to the mobile number.

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