Can I have both APY and NPS accounts?

Yes, you can have both an APY account and an NPS account simultaneously, provided you meet the eligibility criteria for each. This 'combo strategy' is often recommended: APY provides a guaranteed pension floor of up to ₹5,000/month, while NPS provides market-linked growth for a larger retirement corpus. Both qualify for tax deductions under Section 80CCD, and NPS offers an additional ₹50,000 deduction under Section 80CCD(1B).

How much pension will I get from NPS at 60?

NPS pension depends on your total corpus at 60 and the annuity rate. At 60, you must use 40% of your corpus to buy an annuity (pension), while 60% can be withdrawn tax-free. For example, if your NPS corpus is ₹50 lakh, you get ₹30 lakh as lump sum and ₹20 lakh buys an annuity. At a 6% annuity rate, this gives approximately ₹10,000/month pension. The actual amount varies based on investment returns, contribution amount, and annuity rates at retirement.

What is the APY contribution for ₹5,000 monthly pension?

APY monthly contribution for ₹5,000 pension depends on entry age: ₹210 at age 18, ₹376 at age 25, ₹577 at age 30, ₹902 at age 35, and ₹1,454 at age 40. The earlier you join, the lower your monthly contribution. Contributions are auto-debited from your savings bank account. The pension is guaranteed by the Government of India and begins at age 60, continuing for life and then to the spouse.

APY vs NPS Calculator India — Atal Pension vs National Pension Comparison

Q: What is the difference between APY and NPS?

APY (Atal Pension Yojana) provides a guaranteed monthly pension of ₹1,000 to ₹5,000 from age 60, with fixed contributions based on entry age. NPS (National Pension System) is a market-linked retirement scheme with no pension cap — your corpus depends on contributions and investment returns. APY is for non-tax-payers aged 18-40, while NPS is open to all citizens aged 18-70. APY has zero market risk; NPS carries market risk but offers potentially higher returns.

Q: Who cannot join APY after October 2022?

Since 1 October 2022, income tax payers are not eligible to join APY. This was announced via a PFRDA circular implementing a government decision. If you file an income tax return (ITR) and pay income tax, you cannot open a new APY account. Existing APY subscribers who become income tax payers may have their accounts closed with refund of contributions. NPS remains open to all citizens including income tax payers.

Compare Atal Pension Yojana (guaranteed ₹1,000-5,000/month) with NPS (market-linked, no cap). Side-by-side pension comparison, breakeven analysis, and eligibility check. See who should choose APY, NPS, or both. Updated for FY 2025-26 with PFRDA contribution tables.

Compare APY guaranteed pension with NPS market-linked returns at the same contribution

Your current age

APY entry age is 18-40 years. Contribution amount depends on age.

Desired APY monthly pension

APY pension options range from \u20B91,000 to \u20B95,000 per month

Expected NPS return

NPS equity fund historical average: 10-12% p.a.

NPS annuity rate at retirement

Insurance companies offer 5-7% annuity rates. 6% is a reasonable assumption.

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Try another scenario

How to Use This Calculator

APY vs NPS Side by Side tab

Select your current age (18-40 for APY eligibility) and desired APY pension level (₹1,000 to ₹5,000/month). The calculator shows the required APY contribution and projects what the same monthly amount would grow to in NPS. Compare guaranteed APY pension against estimated NPS annuity at retirement. Adjust the NPS return assumption (default 10%) and annuity rate (default 6%) in advanced options.

What if I Invest More? tab

Enter a higher monthly NPS investment (₹500 to ₹50,000+) to see how NPS scales beyond APY's ₹5,000/month pension cap. The calculator shows the breakeven point — the minimum NPS investment needed to match APY's maximum pension through annuity income. This tab highlights NPS's key advantage: no contribution or corpus cap.

Eligibility Check tab

Answer five questions about your profile — age, tax status, sector, bank account, and existing APY — to get a personalised recommendation. The calculator checks APY and NPS eligibility separately and suggests the best strategy: APY only, NPS only, or the combo approach.

Share your result

Every input is encoded in the URL. Click Share to send your exact comparison to a friend, spouse, or financial advisor.

Complete APY Contribution Table — Monthly Amount by Age and Pension Level

▶ Full APY Contribution Table (Age 18-40)

Entry Age	₹1,000/mo	₹2,000/mo	₹3,000/mo	₹4,000/mo	₹5,000/mo
18 years	₹42	₹84	₹126	₹168	₹210
19 years	₹46	₹92	₹138	₹183	₹228
20 years	₹50	₹100	₹150	₹198	₹248
21 years	₹54	₹108	₹162	₹215	₹269
22 years	₹59	₹117	₹177	₹234	₹292
23 years	₹64	₹127	₹192	₹254	₹318
24 years	₹70	₹139	₹208	₹277	₹346
25 years	₹76	₹151	₹226	₹301	₹376
26 years	₹82	₹164	₹246	₹327	₹409
27 years	₹90	₹178	₹268	₹356	₹445
28 years	₹97	₹194	₹292	₹388	₹485
29 years	₹106	₹212	₹318	₹423	₹529
30 years	₹116	₹231	₹347	₹462	₹577
31 years	₹126	₹252	₹379	₹504	₹630
32 years	₹138	₹276	₹414	₹551	₹689
33 years	₹151	₹302	₹453	₹602	₹752
34 years	₹165	₹330	₹495	₹659	₹824
35 years	₹181	₹362	₹543	₹722	₹902
36 years	₹198	₹396	₹594	₹792	₹990
37 years	₹218	₹436	₹654	₹870	₹1,087
38 years	₹240	₹480	₹720	₹957	₹1,196
39 years	₹264	₹528	₹792	₹1,054	₹1,318
40 years	₹291	₹582	₹873	₹1,164	₹1,454

Source: PFRDA (pfrda.org.in). Monthly contributions are auto-debited from your savings bank account. Pension begins at age 60.

APY vs NPS — Feature Comparison

▶ Full Feature Comparison Table

Feature	APY (Atal Pension Yojana)	NPS (National Pension System)
Regulator	PFRDA	PFRDA
Launch year	2015	2004 (govt), 2009 (all citizens)
Entry age	18-40 years	18-70 years
Pension type	Guaranteed fixed pension	Market-linked (estimated)
Pension range	₹1,000-5,000/month	No cap (depends on corpus)
Contribution	Fixed (age-based table)	Flexible (min ₹500/year)
Investment choice	None (govt manages)	Choose fund manager + asset allocation
Market risk	Zero	Yes (equity + debt mix)
Tax benefit (contribution)	80CCD(1) within 80C (₹1.5L)	80CCD(1) within 80C + 80CCD(1B) extra ₹50K
At age 60	Pension begins (for life)	60% lump sum (tax-free) + 40% annuity
Spouse benefit	Same pension continues	Depends on annuity option chosen
Nominee benefit	Corpus returned	Full corpus to nominee
Premature exit	Only on death or terminal illness	After 3 years (80% annuity, 20% lump sum)
IT payer eligible?	No (since Oct 2022)	Yes
NRI eligible?	No	Yes
Best for	Low-income, unorganised sector	Salaried, self-employed, higher earners

Example

Ravi — Age 30, comparing APY ₹5,000 pension with same amount in NPS

Ravi is 30 years old, works in the unorganised sector, and is not an income tax payer. He wants to secure a pension for retirement at 60. He compares APY with the highest pension (₹5,000/month) against investing the same amount in NPS.

Step 1: APY Contribution

Entry age30 years

Chosen APY pension₹5,000/month

Monthly contribution₹577/month

Years of contribution30 years (age 30 to 60)

Total contribution₹2,07,720 (₹577 × 12 × 30)

Step 2: APY Pension at 60

Monthly pension₹5,000/month (guaranteed)

Annual pension₹60,000/year

Corpus to nominee~₹8.5 lakh

After Ravi's deathSpouse gets same ₹5,000/month

Step 3: Same ₹577/month in NPS

Monthly NPS contribution₹577/month (same as APY)

Assumed NPS return10% p.a.

NPS corpus at 60~₹13.2 lakh (estimated)

Lump sum (60%)~₹7.9 lakh (tax-free)

Annuity corpus (40%)~₹5.3 lakh

Est. monthly annuity (6%)~₹2,640/month (estimated)

Step 4: Verdict for Ravi

APY pension₹5,000/month (guaranteed)

NPS annuity (same ₹577/mo)~₹2,640/month (estimated)

NPS advantage₹7.9 lakh lump sum at 60

RecommendationAPY for guaranteed base, NPS for extra

For Ravi, APY gives nearly double the monthly pension compared to the same amount in NPS. However, NPS provides a tax-free lump sum. The ideal strategy: APY for ₹5,000/month guaranteed pension + additional NPS for growth.

FAQ

What is the difference between APY and NPS? ▼

APY (Atal Pension Yojana) is a government-guaranteed pension scheme offering fixed monthly pension of ₹1,000 to ₹5,000 from age 60. Contributions are fixed based on entry age (18-40 years). There is zero market risk. NPS (National Pension System) is a market-linked retirement scheme where your corpus depends on contributions and investment returns. NPS has no pension cap — the more you invest, the larger your corpus. NPS is open to ages 18-70, while APY is restricted to 18-40. Key difference: APY gives certainty (guaranteed pension), NPS gives potential (higher returns but with market risk). Both are regulated by PFRDA.

Can income tax payers join APY? ▼

No. Since 1 October 2022, income tax payers are not eligible to join APY. This was implemented via a PFRDA circular following a government notification. If you file an ITR and pay income tax, you cannot open a new APY account. If you joined APY before October 2022 and subsequently became an income tax payer, your account may be closed and contributions refunded (without interest). For income tax payers, NPS is the recommended alternative — it offers market-linked growth, no contribution cap, and an additional ₹50,000 tax deduction under Section 80CCD(1B).

Should I choose APY or NPS or both? ▼

If you are eligible for APY (age 18-40, non-IT payer, bank account), the combo strategy is optimal: (1) Open APY with ₹5,000/month pension — this provides a guaranteed income floor at retirement, (2) Open NPS Tier 1 with additional monthly investment for market-linked growth. If you are an income tax payer, NPS is your only option. If your income is very low and you want simplicity with zero risk, APY alone is sufficient. For salaried employees with EPF already, NPS adds extra retirement corpus and the ₹50,000 tax benefit under 80CCD(1B) that APY doesn't provide.

What happens to APY and NPS after death? ▼

APY: After the subscriber's death, the spouse receives the same pension amount for life. After both subscriber and spouse pass away, the nominee receives the accumulated corpus (~₹1.7 lakh for ₹1,000 pension, ~₹8.5 lakh for ₹5,000 pension). NPS: If death occurs before 60, the entire corpus is paid to the nominee (no mandatory annuity purchase). If death occurs after 60 (during annuity phase), the spouse or nominee benefits depend on the annuity option chosen at retirement (e.g., annuity with return of purchase price, joint life annuity, etc.). NPS offers more flexibility but requires choosing the right annuity option.

What are the tax benefits of APY and NPS? ▼

APY tax benefits: Contributions qualify for deduction under Section 80CCD(1), which is part of the overall Section 80C limit of ₹1.5 lakh. NPS tax benefits: Same 80CCD(1) deduction within 80C limit, plus an additional ₹50,000 deduction under Section 80CCD(1B) — exclusive to NPS. Salaried employees can also benefit from employer NPS contribution (up to 10% of basic + DA) under Section 80CCD(2), which is over and above the ₹1.5 lakh limit. At retirement, NPS lump sum withdrawal (60%) is tax-free. NPS annuity income is taxable as salary income. For maximum tax savings, NPS clearly has the edge with up to ₹2 lakh+ in deductions.

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