Pension System: Which pension option is right for you, know complete details of the scheme here

APY vs NPS There are many schemes for retirement. Among these, Atal Pension Yojana (APY) and National Pension System (NPS) are also very popular. In both these schemes, the investor gets the benefit of pension. However, both these schemes are quite different from each other. If you are also thinking of investing, then know about these two schemes in this article.

Pension is a source of income after retirement. Everyone wants that his income should never stop. For this, there are currently many retirement schemes. When it comes to retirement schemes, the names of Atal Pension Yojana (APY) and National Pension System (NPS) definitely come up.

Both these schemes are quite popular for retirement. In these schemes, investors get the benefit of pension after retirement. But, in many cases, both these schemes are quite different. In such a situation, know here which of these two schemes is best for you.

National Pension System
The National Pension System (NPS) was launched by the Government of India in the year 2004. In this scheme, the investor has to invest a fixed amount. Only Indians can join this scheme, whose age should be between 18 to 55 years. Let us tell you that this scheme is controlled by the Pension Fund Regulatory and Development Authority (PFRDA).

In NPS, the investor has to invest in the retirement account. In this scheme, investors can also invest on the basis of stocks, government bonds etc. This scheme is linked to the stock market. The investor gets benefits only on the basis of the performance of the investment in which he has invested.

• NPS is a market-linked scheme.
• This scheme is offered in three asset classes such as equity, government securities and corporate bonds.
• There is no maximum limit of investment in it.
• Pension is given on the basis of investor’s contribution and investment returns.
• There is no contribution from the government in the scheme.
• It is mandatory to have a nominee in this scheme.

Atal Pension Yojana
The government has started Atal Pension Yojana under the pension program. This scheme was started in the year 2015. Non-resident Indians along with Indians can also invest in this scheme. This is a guaranteed pension scheme, that is, one gets the benefit of guaranteed pension in it.

The customer gets pension based on the age at which he starts investing and how much he invests. Investors aged 18 to 40 years can invest in this scheme and have to invest for at least 20 years.

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• In this scheme, one gets the benefit of guaranteed pension after retirement.
• You can invest a maximum of Rs 5000 every month in this.
• The scheme provides monthly pension ranging from Rs 1,000 to Rs 5,000.
• The investor does not get a Permanent Retirement Account Number (PRAN) in this scheme.
• The government gives a fixed amount under the terms and conditions.
• It is mandatory to give the name of the nominee in the scheme.