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“We don't tell what to pick, we tell how to pick”

Atal Pension Yojana (APY) Simulator

Analyze your government contributions and reveal the inflation erosion on fixed retirement pensions.

💡 Motto: We don't tell what to pick, we tell how to pick.

Scheme Settings

Entry Age (18-40)
Yrs
18 Years (Min)40 Years (Max)
*Guaranteed monthly pension starting from age 60.
Required Contribution

₹376 / month

*To be paid for 35 years (until age 60).
Expected Inflation Rate
%
Total Premium Paid

₹1,57,920

Over 35 Years
Nominal Monthly Pension

₹5,000 / mo

Fixed for life at age 60
Real Pension Value (Today's Power)

₹880 / mo

Purchasing power at retirement in 35 years
⚠️ The Pension Illusion:Your guaranteed life pension is fixed at ₹5,000/month. However, due to 5.09% annual inflation over the next 35 years, that monthly pension will buy only what ₹880 does today! This fixed amount does NOT adapt to rising prices post-retirement.

Pension Purchasing Power Decay Post-Retirement

Atal Pension Yojana (APY) Scheme Guide

How APY Contributions & Pensions Work

Atal Pension Yojana is a government-backed pension scheme in India targeted primarily at the unorganized sector.

  • Entry Age: Must be between 18 and 40 years of age.
  • Guaranteed Payout: Payout is fixed at ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000/month starting at age 60, depending on contributions.
  • Spouse/Nominee Benefit: After the subscriber's death, the same pension is paid to the spouse. If both die, the accumulated pension corpus is returned to the nominee.

The Fatal Flaw of Fixed Pensions

No Inflation Indexing: The biggest risk of APY is that the pension is **fixed** at a nominal level. Unlike dearness allowance for government pensions, APY does not adjust for inflation.

If an 18-year-old subscribes to a ₹5,000/month pension, that ₹5,000 starting in 42 years is worth only about ₹430 in terms of today's buying power. Post-retirement, as they age from 60 to 75, another 5% inflation will cut the real value of that pension further to under ₹200.

Use this calculator to see how a nominal pension of ₹5,000 compounds to a negligible amount in real terms, and why it is crucial to supplement it with inflation-beating equity index assets.