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APY vs NPS: Which of the two will be right for you? Know here...

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There are many schemes for retirement. Among these, the Atal Pension Yojana and National Pension System are also quite popular. In both these schemes, the investor gets the benefit of a pension. However, both these schemes are quite different from each other. If you are also thinking of investing, then know about these two schemes in this article.

After earning a whole life, a person retires from that work or job at a certain age. Now after retirement, pension is the only source of income. In such a situation, everyone wants that his income should never stop. For this, there are many retirement schemes at present. When it comes to retirement schemes, the names Atal Pension Yojana (APY) and National Pension System (NPS) come up. You must have also heard about them somewhere.

Both these schemes are quite famous for retirement. In these schemes, investors get the benefit of a pension after retirement. But, in many cases, both these schemes are quite different. In such a situation, let us know here which of these two schemes is best for you.

1. National Pension System
For your information, let us tell you that the National Pension System (NPS) was started by the Government of India in the year 2004. In this scheme, the investor has to invest a fixed amount. Only Indians can join this scheme, whose age should be between 18 to 55 years. Let us tell you that this scheme is controlled by the Pension Fund Regulatory and Development Authority.

Let us tell you that in NPS, the investor has to invest in the retirement account. In this scheme, investors can also invest based on stocks, government bonds, etc. This scheme is linked to the stock market. The investor gets benefits only based on the performance of the scheme in which he has invested.

NPS is a market-linked scheme. This scheme is offered in three asset classes such as equity, government securities, and corporate bonds.

There is no maximum limit of investment in it.

Pension is available based on the investor's contribution and investment returns.

There is no contribution from the government to the scheme.

It is mandatory to have a nominee in this scheme.

2. Atal Pension Yojana
The Central Government of India has started the Atal Pension Yojana scheme under the pension program. Talking about its launch, this scheme was started in the year 2015. Non-resident Indians along with Indians can also invest in this scheme. This is a guaranteed pension scheme, that is, it provides the benefit of a guaranteed pension.

The pension is available based on the age at which the customer starts investing and how much he invests. Investors aged 18 to 40 years can invest in this scheme and have to invest for at least 20 years.

In this scheme, the benefit of a guaranteed pension after retirement is available.

You can invest a maximum of Rs 5000 every month in this.

The scheme provides a monthly pension ranging from Rs 1,000 to Rs 5,000.

The investor does not get a Permanent Retirement Account Number (PRAN) in this scheme.

The government gives a fixed amount under the terms and conditions.

It is mandatory to give the name of the nominee in the scheme.

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