Making the right decision during your retirement days is very important. The government has several pension plans lined up for you which will help you in your retirement days. The National Pension Scheme and the Atal Pension Yojana are two schemes to ensure financial security during your retired life.
|Features||NPS||Atal Pension Yojana|
|The age of joining||NPS has an entry age of a minimum of 18 years while the maximum is 55 years.||Atal Pension Yojana has the entry age 18 years and the maximum age being only 40 years.|
|Who can take the plan||NPS allows investors who are citizens of India as well as NRIs to invest in the scheme.||Atal Pension Yojana states that only a resident of India can invest in this plan|
|Pension particulars||While the NPS doesn’t guarantee a pension post retirement.||Atal Pension Yojana provides you with a guaranteed pension after retirement.|
|Tax Benefit||NPS provides investors of this scheme a tax rebate of up to Rs. 2 lakhs.||The Atal Pension Yojana doesn’t provide the applicant with any tax benefits|
|Premature Withdrawal||Only Tier 2 accounts will allow premature withdrawals.||Under the Atal Pension Yojana you will not be allowed to withdraw the money invested prior to the term end. In case of the unfortunate demise of the investor, or the investor has a medical condition that withdrawal may be considered.|
|Type of account||NPS provides investors the choice of 2 types of accounts, Tier 1 and Tier 2.||Atal Pension Yojana, provides investors with just one account.|
|Investments||NPS provides investors options in which he/she can choose to invest their money.||Atal Pension Yojana does not give you the option of choosing the investment of your choice.|
|Government Contribution||NPS does not provide government support, all contributions made will be done by the investor only.||With the Atal Pension Yojana, the government does provide the investor some monetary support.|
National Pension Scheme (NPS): Eligibility, Joining Process and Types
National Pension Scheme or NPS scheme is an initiative of the government of India. It is a contribution-based pension scheme that allows a person to...