You deserve a secure, comfortable retirement life
The secret is to start investing in the market now
What Is an APY Calculator?
The Atal Pension Yojana (APY), introduced during the Union Budget of 2015-16, is a pension scheme for employees in the unorganised and private sectors that don’t have pension benefits. It allows subscribers to contribute a fixed monthly amount that will accumulate as a retirement corpus.
The monthly contribution amount depends on the pension amount you would like to receive upon reaching 60 years of age. You’ll become eligible to receive a fixed pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000 (maximum) monthly. If you want to participate in the scheme, you can use an APY calculator to determine your monthly contribution to the plan.
The Angel One APY calculator allows you to determine your monthly contribution towards APY depending on variables like your age and desired pension amount. In turn, this helps with budgeting and financial planning.
How Does the APY Calculator Work?
The tool uses inputs like age and desired monthly pension to calculate the monthly contribution that you will have to make to the scheme. The online APY calculator helps estimate the following:
- The total amount you would accumulate at 60.
- The total investment period.
- The monthly contribution would help you receive your desired pension.
What Is the APY Calculator Formula?
The calculator has the APY formula built in. Here’s the APY calculator formula:
APY = (1 + r/n)n – 1
r represents the rate of interest
n represents the frequency of compounding per year
How to Use Angel One APY Calculator?
The Angel One API calculator is easy to use. You just need to enter the following details to get results instantly:
- Your joining age: The sooner you join, the longer your funds will have to grow. Besides, when you start investing early, your monthly contribution decreases, allowing you to use the funds elsewhere.
- Your desired pension: You can choose your monthly pension after retirement, and the calculator will calculate your monthly contribution amount.
Let’s understand with an example.
Suppose you want to receive Rs. 5,000 in pension when you are 60 years old. You are currently 30 years old. The calculator will use these values to show the total accumulated value as Rs. 2,07,720, the monthly contribution amount as Rs. 577, and the total tenure of the investment as 30 years.
You can use this information to plan your retirement or use different variable sets in order to find a comfortable contribution amount.
Eligibility Criteria to Invest in APY Scheme
APY is a pension plan introduced by the government and has the following eligibility criteria:
- It is available to all Indian citizens
- All you need is a valid bank account to participate in the plan
- The upper and lower age limits to participate in the plan are 18 years and 40 years, respectively.
- The pension will start at the age of 60. Hence, one should invest for at least 20 years to receive a pension
- To apply under APY, an Aadhaar card and mobile number are a must
- Individuals under the Swavalamban Yojana will be automatically added to the APY plan
Benefits of Using the Online APY Calculator
- The APY calculator saves time and effort by allowing you to compute your monthly contributions based on your joining age and desired pension amount.
- It calculates the results accurately and eliminates the chance of human error.
- It allows you to try out different variables to check the affordability of the contribution amount.
Atal Pension Yojana (APY) is a government pension plan designed for employees in the unorganised and private sectors that don’t offer pension benefits.
The APY calculator is an online tool that helps you ascertain the monthly contributions you will have to make in order to receive your desired pension amount starting at the age of 60.
The APY calculator uses the following inputs to ascertain the required monthly contribution amount to receive your desired pension:
- Age of the applicant
- Desired pension amount
Yes. You can use the APY calculator on Angel One for free at any time.
Yes, you can enrol in both NPS and APY simultaneously if it fits into your financial plan.
Contributions under APY are eligible for tax benefits under Section 80CCD of the Income Tax Act, 1961. The maximum exemption available is 10% or a maximum of Rs. 1.50 lakh annually. You can also claim an additional benefit of Rs. 50,000 under Section 80CCD (1B) per year.
The monthly investment amount depends on the pension that you wish to receive on retirement. If you start investing early, say at 25, and want to receive Rs. 5,000 monthly as a pension, your contribution amount will be Rs. 376. However, if you start late, say at 35, and want to receive the same pension, your monthly contribution will increase drastically to Rs. 902.