What is Atal Pension Yojana (APY)?
The Atal Pension Yojana (APY) is a government pension scheme run by PFRDA, mainly for workers in the unorganised sector. You pay a small fixed amount every month from a young age, and from age 60 you receive a guaranteed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000, whichever you chose when joining. The government guarantees the pension amount.
This APY calculator tells you the monthly contribution you need for your joining age and the pension you want, how long you will pay and how much you will pay in total.
APY Eligibility and Key Features
- Any Indian citizen aged 18 to 40 with a savings bank or post office account and a mobile number can join.
- Contributions are auto-debited monthly, quarterly or half-yearly until age 60.
- The pension is paid for life from age 60. After the subscriber’s death the spouse gets the same pension, and after both, the nominee gets the accumulated pension wealth (₹1.7 lakh for a ₹1,000 pension up to ₹8.5 lakh for a ₹5,000 pension).
- Income tax payers cannot join APY for accounts opened on or after 1 October 2022.
- The contribution qualifies for a deduction under Section 80CCD(1) in the old tax regime.
APY Monthly Contribution Chart for ₹5,000 Pension
| Joining age | Monthly contribution | Years of payment | Total you pay till 60 |
|---|---|---|---|
| 18 | ₹210 | 42 | ₹1,05,840 |
| 25 | ₹376 | 35 | ₹1,57,920 |
| 30 | ₹577 | 30 | ₹2,07,720 |
| 35 | ₹902 | 25 | ₹2,70,600 |
| 40 | ₹1,454 | 20 | ₹3,48,960 |
Example: joining at 25 for a ₹5,000 pension
You pay ₹376 a month for 35 years, a total of ₹1.58 lakh. From 60 you receive ₹5,000 every month for life, and your nominee gets ₹8.5 lakh after both spouses. If you start at 40, the same pension costs ₹1,454 a month, almost four times as much.
The chart above is based on the official PFRDA contribution table for a ₹5,000 pension. For lower pension amounts the calculator scales the contribution proportionally, so the amount may differ by a rupee from the official table; confirm with your bank before enrolling.
How APY Works
APY contributions are invested by PFRDA-appointed pension funds. Whatever the return, the government guarantees the minimum pension you chose. If returns are higher than expected, the extra benefit is passed to the subscriber. This is why the contribution depends only on your joining age and chosen pension, not on market returns.
How to Use This APY Calculator
- Select your current age (18 to 40).
- Choose the monthly pension you want at 60.
- See the monthly contribution, years of payment, total contribution and nominee corpus. Save the report with Preview & Save.
To enrol, visit the bank or post office where you hold a savings account, or use net banking. If you are salaried and eligible for EPF, also check the EPF calculator and NPS calculator.
Exit and Late Payment Rules
- Exit before 60 is allowed only in limited cases, such as death or terminal illness. In normal cases you can leave early but you get back only your contributions with the actual return, not the guaranteed pension.
- A small penalty applies for late contributions, and if payments stop for a long time the account can be frozen and later closed.
Is APY Enough for Retirement?
A pension of ₹5,000 a month looks small, especially after 30 years of inflation. APY is best seen as a safety floor for workers who have no other pension, not the full retirement plan. If you can, pair it with PPF, an equity SIP and NPS.
- The earlier you join, the lower the monthly cost.
- Choose the pension amount you can sustain for decades without missing a payment.
- Keep your bank account active and funded so auto-debit does not fail.