### Atal Pension Yojana Calculation, Righ Joining Age: Wondering what is the right age to join APY? Well, here’s an interesting data point for you. Subscribers joining this government scheme at the age of 18 can save over Rs 13,000 per year

Atal Pension Yojana Calculation, Right Joining Age: Wondering what is the right age to join APY? Well, here’s an interesting data point for you. Subscribers joining this government scheme at the age of 18 years can save over Rs 13,000 per year in contribution than those joining at the maximum age of 39, for a minimum guaranteed pension of Rs 5000/month after retirement. Can’t believe? Here’s an explainer:

The age limit for joining APY is 18-40 years, meaning those aged 18 years or above but below 40 years can join this pension scheme. For a guaranteed pension of Rs 5000/month, a person joining at the age of 39 years will have to make a half-yearly contribution of Rs 7778. The total yearly contribution of such subscriber will be Rs 7778×2 = Rs 15,556.

In contrast, those subscribing to APY at the age of 18 years will have to contribute just Rs 2478 annually (in two half-yearly instalments of Rs 1239). The difference in the yearly contribution of these two age groups is Rs 15,556-Rs 2478 = Rs 13,078!

Those joining at the age of 25 years and 30 years will have to make half-yearly contributions of Rs 2219 and Rs 3405 respectively.

The above numbers are proof that subscribing early to APY is beneficial as the annual contribution for early joiners is less. (See chart below for a comparison)

However, the official age-wise contribution data shows that most of the contribution in APY accounts are received in the 39-year group.

Interesting numbers about contributions to APY were revealed by the Ministry of Finance this week. The data submitted by Anurag Thakur, Minister of State for Finance, in a written reply to a query in Lok Sabha, shows that most of the contributions to APY, including the Government contribution, was received in the account belonging to people aged 39 years in FY 2018-19. The total amount was Rs 236,13,48,676.

The minimum amount of contribution (Rs 2933,20,238) was in the accounts belonging to people aged 18 years in FY 2018-19. These trends were similar in the previous two financial years.

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