Both Atal Pension Yojana (APY) and New Pension Yojana (NPY) offer post retirement financial security. However, there are some differences between both the plans which one needs to understand to make a smart investment.
Peaceful Post-Retirement Life
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Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000
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| Parameters | New Pension Scheme | Atal Pension Yojana |
| Age of Joining | 18-60 years | 18-40 years |
| Who can join? | All Indian citizens (both resident or non-resident) | Only resident Indians |
| Pension slabs | No fixed slab | 5 slabs - Â Rs 1000; Rs 2000; Rs 3000; Rs 4000; and Rs 5000 per month |
| Types of Accounts | Holder has two accounts: Tier 1 and Tier 2 | No differentiation |
| Premature Withdrawal | In tier 2 account, there is no restriction and money can be withdrawn at any time. However in tier 1, premature withdrawal is allowed up to certain conditions | No premature withdrawal, except in death or critical illness |
| Government Contribution | No contribution | The govt. contributes maximum Rs 1000 if the account is opened before 31st December. |
| Tax Benefit | Tax benefit is available only in Tier 1 account | No tax benefit |
| Who manages it? | It is managed by PFRDA | It is administrated by the PFRDA/Government |
| Permanent Account Number | The account holder gets the unique Permanent Retirement Account Number (PRAN), which can be used to manage NPS around the world | No such facility is available |
| Where to open an account? | An account can be opened at Point of Presence (POP) branch. You can also open it online through providers such as ICICI Direct. | Approach the bank where you have a saving account |
| Fund managers |
|
No option to choose fund manager |
| Nomination Facility | Although nomination is not mandatory but you can nominate maximum 3 members | Nomination is mandatory |
| Toll free number | 1-800-222080 | 1800-180-1111 / 1800-110-001 1800-180-1111 / 1800-110-001 |
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˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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