Firstly, for someone thinking, “Is NPS and Atal Pension Yojana the same” then its answer is no! Continue reading to know more!
NPS or National Pension Scheme is a retirement planning scheme that extends market-linked returns. Individuals are eligible to invest in this scheme till they reach 60 years. There are two different methods of investment and four different fund categories featured in this scheme.
They can also utilise the auto choice strategy for automatically allocating investments to different funds. The financial market determines returns arising from this scheme.
On the other hand, APY or Atal Pension Yojana Scheme is also a retirement-oriented scheme that extends assured pension to individuals with low income in the unorganised sector. One can invest in this scheme before reaching 40 years of age, and this scheme attains maturity until one reaches 60 years of age.
Under this system, there exist five options for fixed pension amounts, which show a variation between ₹1000 to ₹5000. An individual chooses the pension amount to be received while making an investment in the scheme. This pension amount is selected according to age, and the amount to be contributed towards the plan is determined depending on the frequency of contribution.
Are you wondering, “can I join both APY and NPS”?
You would get an answer to that a bit later!