Atal Pension Yojana (APY) Calculator
Calculate Your APY Contributions and Pension
What is Atal Pension Yojana (APY)?
The Atal Pension Yojana (APY) is a government-backed pension scheme that was introduced in the Union Budget of 2015-2016. It is designed to provide a guaranteed pension to workers in the unorganized sector upon reaching the age of 60. The scheme offers a fixed monthly pension ranging from ₹1,000 to ₹5,000, depending on the contribution made by the subscriber.
The APY aims to encourage people to save for their retirement and ensure a steady income during their old age. The contributions made by the subscriber are invested, and the government guarantees the pension payout.
How Does the APY Calculator Work?
The APY Calculator helps you estimate your monthly contribution and the total contribution till retirement based on the following parameters:
- Current Age: The age at which you start contributing to the Atal Pension Yojana.
- Desired Monthly Pension: The pension amount you wish to receive after retirement, which can be ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month.
The calculator uses predefined tables provided by the government to determine the required monthly contribution for the desired pension amount, based on your current age.
Benefits of Atal Pension Yojana (APY)
- Guaranteed Pension: APY provides a guaranteed pension amount ranging from ₹1,000 to ₹5,000, ensuring financial security in old age.
- Government-Backed: The scheme is backed by the Government of India, making it a safe and reliable investment for retirement.
- Low Contribution: The scheme requires a low monthly contribution, making it accessible to workers in the unorganized sector.
- Tax Benefits: Contributions to APY are eligible for tax deductions under Section 80CCD(1) of the Income Tax Act.
Frequently Asked Questions (FAQ)
1. Who is eligible for the Atal Pension Yojana?
Any Indian citizen aged between 18 and 40 years with a savings bank account is eligible to join the Atal Pension Yojana. The subscriber must not be a member of any statutory social security scheme.
2. How is the pension amount determined?
The pension amount is determined by the contribution made by the subscriber and the age at which they start contributing. The earlier you start, the lower the monthly contribution required to achieve a higher pension amount.
3. Can I increase or decrease my contribution amount?
Yes, subscribers have the option to increase or decrease their contribution amount once a year, depending on their financial situation. However, the pension amount will be adjusted accordingly.
4. What happens if I stop contributing to APY?
If contributions are discontinued, the account will be frozen after six months, deactivated after 12 months, and closed after 24 months. It is important to maintain regular contributions to continue enjoying the benefits of the scheme.