APY Calculator

The Atal Pension Yojana Calculator is a tool that calculates the monthly investment required to obtain the desired pension amount after retirement. The APY calculator is a simple tool that is free to use and is available online.

What is Atal Pension Yojana?

The Atal Pension Yojana (APY) is a national pension scheme for workers in the unorganised sector. Individuals in the private sector without a formal pension plan are also eligible for APY. It was introduced by the Government of India in the Union Budget of 2015-16 to encourage individuals to save small amounts of money and reap the benefits once they retire via a monthly income.

In addition, the minimum age to join is 18, and the maximum age to join is 40. The contribution period under this scheme must be at least 20 years, and investors must contribute until they reach the age of 60. Furthermore, at the age of 60, they are eligible for a monthly guaranteed pension. However, depending on the contributions made, the fixed monthly pension ranges between INR 1,000 and INR 5,000. Besides, if the investor joins the scheme early, the contributions will be lower. Furthermore, any individual can invest in this. The emphasis, however, is on the unorganised sector. Individuals can select the fixed pension they want to receive after retirement, and the contribution is based on that. Subscribers can also change the amount of their pension. This facility, however, is only available once a year in April.

A subscriber must pay a penalty if they fail to make a payment. In addition, the penalty ranges from INR 1 to INR 10 depending on the contribution. Furthermore, if the subscriber defaults for six months, the account will be frozen, deactivated after 12 months, and closed after 24 months. Investors can claim up to INR 1.5 lakhs in tax benefits under Section 80CCD (1) and up to INR 50,000 under Section 80CCD (1B).

What is Atal Pension Yojana (APY) calculator?

The Atal Pension Yojana calculator is a web-based tool that calculates the real returns on investments in the APY scheme. It is an instant-results calculator that calculates how much interest can be earned based on two parameters:

Age: The investor's current age.

Pension Amount Expected:Subscribers can select the amount of their pension. Investors also have five options to choose from, with pension amounts ranging from INR 1,000 to INR 5,000.

When the above inputs are entered, the calculator delivers the following results:

Monthly investment amount: This is the amount of money that must be invested each month in order to receive the desired pension amount.

Contribution years: This is the number of years that the subscriber will contribute to the scheme.

Total contribution: This is the sum of the investor's monthly investments.

How to use a Atal pension yojana calculator?

The APY Calculator is a simple and easy-to-use tool. All that is required is to enter one's current age along with the desired monthly pension amount. In addition, the calculator will calculate your monthly investment, years of contribution, and total contribution.

Let’s take an example of a 20-year-old APY subscriber. He also wants INR 3,000 per month as his post-retirement pension. He can estimate the monthly contribution amount by using an APY calculator.

Inputs

The following are the calculator inputs:

• The investor is 20 years old.
• The pension amount is INR 3,000.

When the above inputs are entered, the calculator will produce the following results:

• INR 150 per month as a monthly investment
• Contribution period: 40 years
• INR 72,000 total contribution

As a result, the subscriber must invest INR 150 every month for the next 40 years. He will also contribute INR 72,000 in total. He will also receive INR 3,000 per month once he turns 60.

What are the beefits of Atal Pension Yojana calculator?

The following are some of the advantages of using the APY Calculator:

Simple to use: The calculator is a straightforward and user-friendly tool. To calculate their monthly contribution, enter their age and desired monthly pension amount. Quick and accurate calculation:

Fast: The calculator is accurate and estimates the monthly contribution in seconds.

Investment planning: The APY calculator will aid investors in their retirement and current financial planning. They will also know how much money they need to set aside from their current income each month. Furthermore, they will know how much they can expect to earn after retirement by investing in this scheme.

Features of Atal Pension Yojana

Minimum investment
The minimum investment amount for the Atal Pension Yojana varies depending on the investor's age and the pension plan. For example, if a 25-year-old subscriber wishes to receive a monthly pension of INR 3000 after retirement, the monthly contribution they must make now is INR 347.

Maximum investment
The maximum investment also varies depending on the investor's age and the type of pension plan chosen.

Contribution Frequency
Investors can also choose how frequently they contribute. It can be done monthly, quarterly, or semi-annually.

Option for Automatic Debit
For monthly contributions, APY provides an auto-debit option. One can link their bank account and have their monthly contributions deducted automatically. Furthermore, to avoid penalties, the bank account must have a sufficient balance.

Investment tenure
The duration of an investment is the amount of time that investors must contribute to the scheme. It is determined by when the investor begins the APY scheme. For example, suppose a person is 25 years old and their maturity tenure is 35 years. Similarly, if a person is 20 years old, their maturity tenure is 40 years.

Early Withdrawal
The Atal Pension Yojana does not permit early withdrawals. However, if the investor dies or is diagnosed with a terminal illness, they can withdraw their investment early.

Pension Age
The Atal Pension Yojana allows people to begin receiving their pension when they reach the age of 60.

Amount of Pension
Investors who contribute to the Atal Pension Yojana are eligible for a guaranteed pension amount. Furthermore, the fixed pension amount that the investor wishes to earn post-retirement can be INR 1,000, INR 2,000, INR 3,000, INR 4,000, or INR 5,000.

Spouse's Pension
In the event of the account holder's death, the account holder's spouse is entitled to a pension. In addition, the nominee will be eligible for the Atal Pension Scheme benefits.

Tax Exemption
Contributions to the Atal Pension Yojana are tax-deductible under Income Tax Act of 1961 Section 80CCD. Furthermore, the maximum exemption under Section 80CCD (1) is 10% of the individual's gross total income (limit of INR 1,50,000). Section 80CCD also allows for an additional INR 50,000 exemption. (1B).

Top benefits of Atal Pension Yojana

Income in old age: The Atal Pension Scheme provides depositors with a steady income source after they reach the age of 60. As a result, the pension amount can be used to meet one's basic financial needs.

Pension Amount: The depositor can increase or decrease their pension amount once a year.

Government Plan: The APY scheme is backed by the government and thus carries no risk of loss. Additionally, the depositor is guaranteed a pension.

Unorganized Sector: The primary goal of this pension scheme was to tap the unorganised sector and provide a consistent source of income for them in their later years.

Nomination Service: The pension account enables the depositor to select and nominate a beneficiary. The nominee will receive the benefits of the pension account if the APY account holder dies.

Tax Benefit: Contributions to APY qualify for tax exemption under Section 80CCD of the Income Tax Act of 1961.

Who can invest in Atal Pension Yojana?

One must meet the following eligibility requirements to open an Atal Pension Yojana account:

• He/she should be an Indian national.
• The entry age is 18 years. In addition, the maximum entry age is 40 years.
• The contribution period, however, should be at least 20 years.
• You must have both an Aadhaar number and a mobile number.
• He/she should have a bank account.
• Individuals enrolled in the Swavalamban Yojana will also be automatically transferred to the Atal Pension Yojana scheme.

What is the process to invest in Atal Pension Yojana?

APY schemes are available at all nationalised banks. As a result, one can open an APY account by going to the nearest branch. The following steps will assist you in investing in the Atal Pension Yojana:

• Fill out and return the APY registration form to your local bank. The APY forms are available both in-person and online. The forms are also available in English, Hindi, Bangla, Gujarati, Tamil, Marathi, Kannada, Odia and Telugu.
• Please include your phone number, bank account number, and Aadhaar number.
• Submit a photocopy of your Aadhaar card.
• The initial contribution (investment amount) will be deducted from the bank account linked when the account is opened.
• In addition, the bank must provide an acknowledgement number, also known as a PRAN number.
• Furthermore, all future monthly contributions will be deducted automatically from the bank account.
• A confirmation message is sent to the mobile number once the application is approved.