Comparison between National Pension System (NPS) and Atal Pension Yojna (APY)

Comparison between National Pension System (NPS) and Atal Pension Yojna (APY)

What are the differences between National Pension System vs Atal Pension Yojana this is what my topic for today to discuss and let you know all the things completely and clearly.

Preparing for retirement is the basic thing every man should prepare for this, as after retirement your savings and your pension will make your path easy towards the journey of life.

National Pension System vs Atal Pension Yojana

However earlier days government used to provide the pension on all government jobs, however as time passed by government instead of providing pension from his account asked the employees to contribute from their savings to have the pensions or a fund ready to cope up the requirements of the future after retirement.
National Pension System vs Atal Pension Yojana
Currently in India two schemes are most popular one of which is Atal Pension Yojana(APY) and National Pension Scheme(NPS). Only these two schemes are currently available for Indian citizens for pension perspective.
National Pension System vs Atal Pension Yojana

What is APY(Atal Pension Yojana)

 
  • APY guarantees a minimum pension of Rs. 1k, 2k, 3k, 4k and 5k to the workers who are citizens of India and are employed in the unorganized sector.
  • One can claim the benefits once he\she reaches 60 years of age.
  • Amount of pension scheme varies from 1k to 5k, which is totally dependent on the amount you contribute.
  • Eligibility criteria is
Minimum 18 years of age and must not exceed 40 years while applying
Persons should have savings bank account with his\her name before applying
Applicant mobile number should be registered with the bank with full details
  • Auto debit process for contribution
  • Now the Tax Benefit is available for APY same as of NPS
  • You will also receive PRAN(Permanent Retirement Account Number)
National Pension System vs Atal Pension Yojana
 

What is NPS(National Pension System)

 
  • National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme
  • Under the NPS, an individual’s savings is pooled in a pension fund.
  • These funds are invested by Pension Fund Regulatory and Development Authority (PFRDA) regulated professional fund managers as per the approved investment guidelines in the diversified portfolios comprising of government bonds, bills, corporate debentures and shares.
  • These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.
  • Eligibility criteria : All citizens age from 18 years to 60 years of age, including NRIs.
  • Additional Tax benefit of ₹ 50,000 under section 80CCD (1B) which would be over and above the ceiling limit of ₹ 1,50,000 as prescribed under section 80 CCE.
  • You can apply for ECS facility from bank or contribute manually.
  • You will also receive PRAN(Permanent Retirement Account Number)

You can check the latest updated presentation as well.

Today I will discuss both of them and will tell you the differences of both of them and benefit as well in which should you invest in the video.

Please watch the complete video for proper understanding.

 

 

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