New Pension Yojana vs. Atal Pension Yojana

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
Tax Free Regular Income
Wealth Generation to beat Inflation

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51 Partners Insurance Partners
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Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000

Get the best^˜ returns & make the most of your golden years

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9.7 Crore

Registered Consumer

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Policies Sold

Disclaimer: ##Rs 60,000 are the monthly pension amounts at the assumed rate of return of 8% p.a. and 4% p.a. for unit linked insurance plans. This is an illustrative example and the returns are not guaranteed & dependent on the policy term and premium term availed along with the other variable factors. The market linked return of 60K per month is for an 18 year old investing 6k per month for 20 years in a whole life policy having policy term 82 years in which Systematic partial withdrawals start at the age of 65 years at 5% rate of withdrawal per year. The investment risk in the policy is borne by the policyholder. All Plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All Plans listed here are of insurance companies’ funds. Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

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 - 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	Six pension fund managers: HDFC Pension Management Company ICICI Pension Fund Management Company Kotak Mahindra Pension Fund LIC Pension Plan Reliance Capital Pension Fund SBI Pension Funds UTI Retirement Solutions	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.