What is the Atal Pension Yojana?
Atal Pension Yojana is a government-guaranteed pension scheme for the unorganised sector, open to those aged 18–40 with a savings bank account. You contribute until 60 and then receive a fixed monthly pension of ₹1,000 to ₹5,000 for life.
One eligibility rule catches people out: since 1 October 2022, anyone who is or has been an income-tax payer is not eligible to join APY. An account opened in breach of that is closed and the accumulated pension wealth returned.
After your death the same pension continues to your spouse, and the accumulated corpus (170× the monthly pension) goes to your nominee.
Formula & worked example
Contributions are set by a government table based on entry age and pension level:
Nominee corpus = Monthly pension × 170
Worked example: joining at 28 for a ₹3,000 pension requires ₹292 a month for 32 years — ₹1,12,128 in total. From 60 you receive ₹3,000 a month for life, your spouse receives the same pension after you, and your nominee eventually receives the ₹5.1 lakh corpus. Every figure here comes from the prescribed contribution table in Annex-1 of the official APY scheme document, not from a projection.
How to use this atal pension yojana calculator
- Enter your current age — you must be between 18 and 40.
- Choose the monthly pension you want from 60.
- The contribution is fixed and rises sharply with later entry age.
- Contributions are auto-debited from your bank account monthly.
Smart tips
- Join as early as possible. At 18 a ₹5,000 pension costs ₹210 a month; at 40 the same pension costs ₹1,454.
- APY is best suited to those without EPF or NPS. Salaried employees are usually better served by NPS.
- Contributions qualify for deduction under Section 80CCD(1B) in the old regime.
- Maintain balance in the linked account — failed auto-debits attract penalties and can freeze the account.
- You may increase or decrease the pension level once a year during April.
Frequently asked questions
What is Atal Pension Yojana?
A government-guaranteed pension scheme for those aged 18–40, providing ₹1,000 to ₹5,000 a month from age 60 for life.
How much do I need to contribute to APY?
It depends on entry age and pension level, and the amounts are fixed by a prescribed government table rather than estimated. For a ₹3,000 pension the monthly contribution is ₹126 at entry age 18, ₹292 at 28, ₹347 at 30 and ₹873 at 40.
Can I exit APY before 60?
Voluntary exit before 60 is allowed only in specific circumstances, returning your contributions plus net accumulated income minus account charges.
Is APY better than NPS?
APY guarantees a fixed pension and suits the unorganised sector. NPS is market-linked with higher potential returns and no upper cap, and suits salaried investors.
Want the theory behind the numbers? Read our pension guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: Income Tax Department — deduction limits for AY 2026-27: 80C ₹1,50,000, 80CCD(1B) ₹50,000, 80D ₹25,000/₹50,000, 80TTA ₹10,000, 80TTB ₹50,000, s.24(b) ₹2,00,000 (page updated 9 Jul 2026). How we check these numbers.