1. What is Atal Pension Yojana (APY)?

The Atal Pension Yojana is a government-backed pension scheme in India, administered by the Pension Fund Regulatory and Development Authority (PFRDA). It provides a fixed pension after retirement based on contributions made during the working years.

2. How Does the Calculator Work?

The calculator uses the HDFC APY contribution table:

Where:

• \( Age \) — Current age of subscriber (18-40 years)
• \( Desired Pension \) — Monthly pension amount (₹1000-₹5000)
• \( f \) — Contribution table mapping

Explanation: The contribution amount is determined by a predefined table based on entry age and desired pension amount.

3. Importance of Pension Planning

Details: Pension planning ensures financial security in retirement years. APY provides guaranteed returns and is particularly beneficial for workers in the unorganized sector.

4. Using the Calculator

Tips: Select your current age (between 18-40) and desired pension amount. The calculator will show the required monthly contribution until age 60.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for APY?
A: Any Indian citizen between 18-40 years with a savings bank account can join APY.

Q2: What is the pension age?
A: The pension starts at age 60 and continues for lifetime.

Q3: Is there a government co-contribution?
A: For non-taxpayers who joined before March 2016, the government co-contributes 50% of the contribution or ₹1000/year (whichever is lower) for 5 years.

Q4: Can I change my pension amount later?
A: Yes, once a year during the active contribution period.

Q5: What happens if I stop contributing?
A: The account may become dormant and attract penalties. After 6 months of non-payment, the account may be frozen.