Is the APY pension guaranteed?

Yes. APY is a defined-benefit scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA). The monthly pension of ₹1,000 / ₹2,000 / ₹3,000 / ₹4,000 / ₹5,000 chosen at enrolment is guaranteed by the central government for the life of the subscriber, then for the life of the spouse, regardless of actual investment returns. If the accumulated corpus underperforms the guaranteed pension liability, the shortfall is met by the central government — a key distinction from market-linked schemes like NPS.

What happens to APY corpus after my death?

Upon the subscriber's death after age 60, the same monthly pension passes to the spouse for life (the spouse is the default nominee). After both the subscriber and spouse pass away, a lump-sum corpus equal to 170 × the chosen monthly pension is paid to the registered nominee — so ₹1.7 lakh for the ₹1,000 tier up to ₹8.5 lakh for the ₹5,000 tier. If the subscriber dies before age 60, the spouse may continue contributions and claim the pension at the subscriber's notional age 60, or exit and receive the accumulated corpus.

Can I increase my APY pension later?

Yes. PFRDA allows subscribers to upgrade or downgrade the chosen pension tier once per financial year, typically in April. The monthly contribution adjusts to the new tier based on the subscriber's current age — moving from ₹1,000 to ₹5,000 at age 35 means recalculating the contribution from the PFRDA chart for that age. If the upgrade creates a contribution shortfall for past years, the difference is collected with applicable interest. Downgrading is similarly allowed, and any excess past contribution is refunded.

APY vs NPS — which is better?

APY and NPS serve different needs. APY offers a guaranteed pension (₹1,000–₹5,000/month) with a fixed contribution and no market risk — ideal for unorganised-sector workers and those who want certainty. NPS is market-linked with no guaranteed pension amount, but offers much larger corpus potential (typically ₹50 lakh to ₹2 crore at retirement) and tax benefits up to ₹2 lakh per year (₹1.5L under 80CCD(1) + additional ₹50K under 80CCD(1B)). APY also offers the 80CCD(1) and 80CCD(1B) deductions but the headroom is shared with NPS. A common strategy is to enroll in APY for guaranteed baseline pension and add NPS for additional market-linked growth.

APY Calculator — Atal Pension Yojana Contribution (India)

APY

💰 Finance

Atal Pension Yojana Calculator

Calculate the monthly contribution required for the Atal Pension Yojana (APY) to secure a fixed pension of ₹1,000–₹5,000 per month from age 60. Shows total contribution, lump-sum corpus, and lifetime pension projection.

Reviewed by the CalculatorKosh Editorial TeamUpdated June 2026Free · No sign-up

APY Details

Your current age

yrs

18 yrs40 yrs

Eligibility 18–40 years (must contribute ≥20 years before age 60)

Desired monthly pension

Your tax slab

Drag sliders to explore different scenarios

Entry Age25 yrs

18 yrs40 yrs

What-If Contribution at age 25

₹376/mo

Monthly Contribution Required

((for ₹5,000/mo pension from age 60))

Years to contribute: 35 · Total in: ₹1,57,920 · Nominee corpus: ₹8,50,000

Years to Contribute

35 yrs

Total Contribution Over Life

₹1.6 L

Monthly Pension from Age 60

₹5,000/mo

Corpus to Nominee

₹8.5 L

Pension explainer

You contribute ₹376/mo for 35 years. From age 60 you receive ₹5,000/mo for life. After both you and your spouse pass, your nominee gets a lump sum of ₹8,50,000 (₹8.50 Lakh).

Tax benefit

Section 80CCD(1) lets you deduct your annual contribution within the ₹1.5L 80C cap. APY subscribers can also use the additional ₹50K under 80CCD(1B) — that's effectively ₹2L total deduction headroom shared with NPS. At your 20% slab, that works out to ₹902/yr on the APY contribution alone, or ₹31,584 over 35 years.

What you pay in vs what comes back

Pension flow shown over a 20-year retirement horizon for visual scale; actual pension continues for life of subscriber and spouse.

Drag sliders to explore different scenarios

Entry Age25 yrs

18 yrs40 yrs

What-If Contribution at age 25

₹376/mo

How It Works

The Atal Pension Yojana (APY) is a guaranteed-pension scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA) for subscribers aged 18–40. Unlike market-linked schemes, the monthly contribution is fixed at enrolment based on your entry age and the pension tier you choose — ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month, payable for life from age 60.

How the contribution is determined

PFRDA publishes a fixed monthly-contribution chart with one cell for each combination of entry age (18–40) and pension tier (₹1,000–₹5,000). The calculator looks up the exact figure from that chart — there is no compounding maths, no return-rate assumption. Earlier you start, lower your monthly outflow: ₹42 at age 18 versus ₹291 at age 40 for the ₹1,000 pension tier.

Lifetime payout structure

From age 60, the chosen pension is paid monthly for the rest of your life. After your death, the same pension passes to your spouse for life. After both you and your spouse pass, a lump sum equal to 170 × monthly pension is paid to your registered nominee — ranging from ₹1.7 lakh for the ₹1,000 tier to ₹8.5 lakh for the ₹5,000 tier.

Tax benefits — 80CCD(1) + 80CCD(1B)

APY contributions qualify for deduction under Section 80CCD(1) within the overall ₹1.5 lakh 80C ceiling. APY subscribers can also claim the additional Section 80CCD(1B) deduction of ₹50,000 — taking the total possible deduction headroom to ₹2 lakh per year, shared with NPS contributions. A 20%-slab taxpayer saving the full annual APY contribution gets meaningful tax relief on top of the guaranteed pension.

Government co-contribution status

The 50% government co-contribution (capped at ₹1,000 per year, for the first 5 years of subscription) was discontinued from 1 October 2022 for new income-tax-payer subscribers. It remains available for non-tax-payers. This calculator does not add the co-contribution to the corpus shown — it is conservative.

Frequently Asked Questions

The Atal Pension Yojana is open to any citizen aged between 18 and 40 years with a valid savings bank or post-office account. The subscriber must contribute for a minimum of 20 years before the pension starts at age 60, which is why the upper age cap is fixed at 40. Aadhaar and a mobile number linked to the bank account are mandatory for enrolment. Subscribers who are income-tax payers can still join, but the 50% government co-contribution (capped at ₹1,000/year) is no longer available to them from 1 October 2022 — it remains available for non-income-tax-payer subscribers.