10 Differences between Atal Pension Yojana (APY) and New pension System (NPS)

Atal Pension Yojana (APY) and New pension System (NPS) both are the Yojana which are supposed to provide security after retirement. The Security in both the Yojana will be provided in the form of pension. On 9 May 2015 PM Modi has launched Atal Pension Yojana .the main reason to launch the Atal pension Yojana is to provide security to the unorganized sector of Indian Society.

Difference between APY and NPS

1. Joining Age – The Age of joining in Atal Pension Yojana is from 18 to 40 years. Whereas in New Pension System Age of joining is from 18 to 55 Years.

2. Who can join – Only resident Indian can join in APY but in NPS any Indian including NRI can also join.

3.Pension slab – In APY there are five pension slab i.e Rs 1000/-,Rs 2000/-,Rs 3000/-,Rs 4000/-,Rs 5000/-.Where as in NPS it decided by the Pension Fund Manager performance.50% amount will be paid at the time of retirement and rest will be paid on yearly basis.

4. Guaranteed Pension– In APY there is guaranteed pension after retirement. In NPS there is no guaranteed pension. In NPS Safe and reasonable market based returns over the long term.

5. Type of account - In APY there is only one type of account is there. Where as in NPS there are two types of account is there. In NPS there are Tier-I and Tier-II of account are there.

6. Premature Withdrawal - In APY there is no premature withdrawal allowed except death or special condition. Where as in NPS Premature withdrawal is allowed. The premature withdrawal is only allowed in Tier-II account. But to open Tier-II account you must have Tier-II account in which premature withdrawal is not allowed.

7. Government Contribution – In APY there is 50% or max of Rs 1000/- contribution from Government is done if the account is opened on or before 31 Dec 2015.Where as in NPS there is no such Government is allowed.

8. Tax Benefit- In APY there is no tax benefit, where as in NPS you can avail a Tax rebate upto Rs 2, 00,000.

9. Reason to join- In APY you can join only to get pension after 60 years. Where as in NPS there are three reasons which are listed below.

(i) To provide old age income.(ii) Safe and remarkable return over long period.(iii) Extending old age security coverage to all citizens.

9. Fund Manager – In APY there is no option to select Pension Fund Manager. Where as in NPS there is a option to select Pension Fund Manager. There are six Pensions Fund Manager who will manage your contributions. The six Pension Fund Manager are listed below.

(i) HDFC Pension Management Co.Ltd(ii) ICIC Prudential Pension Fund Management Co. Ltd.(iii) Kotak Mahindra Pension Fund Ltd.(iv) LIC Pension Fund Ltd.(v) Reliance Capital Pension Fund Ltd. (vi) SBI Pension Funds Pvt. Ltd.(vii) UTI Retirement Solutions Ltd(viii) Pension Fund by Birla Sunlife Insurance Co. Ltd.

10.Permanent Account – In NPS once you are enrolled in Yojana you will be issued Unique Permanent Retirement Number (PRAN).In this way you can operate your account from anywhere within in the India. Whereas there is no such PRAN is there in APY. The monthly contribition in APY will be auto debited from your saving account.

11. Where to open account- In APY you can open in any Indian bank where you have a saving account. Where as in NPS you can open the account at List POPs.

12. Toll free Number –The Toll-free number for NPS is 1-800-222080.Whereas the National toll free number for APY is 1800-180-1111/1800-110-001.

13. Official Website-The official Website for APY is

http://jansuraksha.gov.in/

Whereas for NPS the official Website is

http://www.pfrda.org.in/

More Info@http://goo.gl/9nAOhi