APY or NPS: Investing in a pension plan in time is very important for a happy life after retirement. Here you are being given special information about the National Pension System and Atal Pension Yojana.
APY or NPS: Both Atal Pension Yojana or National Pension System are government schemes, although there are many differences between them. If you want a certain amount after your retirement, then you must have some kind of pension scheme or else there may be a lot of difficulties in the era of rising inflation. Here we will tell about both the schemes from which you can choose the right pension plan for you.
National Pension System:
This scheme was started in 2004 for government employees but in 2009 it was also opened for private employees. Through this, you can invest a fixed amount for a fixed period of time. It has been implemented for people in the age group of 18 years to 55 years. It can be taken by citizens of India and NRIs. From the pension point of view, it is not a guaranteed pension scheme as it is market linked. Apart from government securities, fixed income securities, non-government securities, it also invests in equity.
Understand the system of NPS
There are two types of accounts in NPS, namely Tier 1 and Tier 2. The difference between the two is that money cannot be withdrawn from Tier 1 account till the age of 60 years. You can withdraw money from Tier 2 account like a savings account.
Special condition of NPS
According to the special condition of NPS, it is necessary to take at least 40 percent annuity in it and the higher this amount, the higher will be your pension amount.
Atal Pension Yojana:
Atal Pension Yojana was started for the unorganized sector employees and in this a fixed amount is received as pension after 60 years of age. Only residents of India can invest in Atal Pension Yojana. Its holder or subscribers can choose the pension amount depending on their contribution, which can range from Rs 1000 to Rs 5000.
Understand the system of APY
One special thing in Atal Pension Yojana is that you cannot withdraw money before maturity. There is a provision to close the account before the age of 60, but before the age of 60, money cannot be withdrawn from it. However, after the death of the subscriber, the money can be withdrawn before maturity.
