New Pension Yojana vs. Atal Pension Yojana


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Both Atal Pension Yojana (APY) and New Pension Yojana (NPY) offer post retirement financial security. However, there are some differences between both the plans which one needs to understand to make a smart investment. Let’s look at them:

Parameters	New Pension Scheme	Atal Pension Yojana
Age of Joining	18-60 years	18-40 years
Who can join?	All Indian citizens (both resident or non-resident)	Only resident Indians
Pension slabs	No fixed slab	5 slabs - Rs 1000; Rs 2000; Rs 3000; Rs 4000; and Rs 5000 per month
Types of Accounts	Holder has two accounts: Tier 1 and Tier 2	No differentiation
Premature Withdrawal	In tier 2 account, there is no restriction and money can be withdrawn at any time. However in tier 1, premature withdrawal is allowed up to certain conditions	No premature withdrawal, except in death or critical illness
Government Contribution	No contribution	The govt. contributes maximum Rs 1000 if the account is opened before 31st December.
Tax Benefit	Tax benefit is available only in Tier 1 account	No tax benefit
Who manages it?	It is managed by PFRDA	It is administrated by the PFRDA/Government
Permanent Account Number	The account holder gets the unique Permanent Retirement Account Number (PRAN), which can be used to manage NPS around the world	No such facility is available
Where to open an account?	An account can be opened at Point of Presence (POP) branch. You can also open it online through providers such as ICICI Direct.	Approach the bank where you have a saving account
Fund managers	Six pension fund managers: HDFC Pension Management Company ICICI Pension Fund Management Company Kotak Mahindra Pension Fund LIC Pension Plan Fund Reliance Capital Pension Fund SBI Pension Funds UTI Retirement Solutions	No option to choose fund manager
Nomination Facility	Although nomination is not mandatory but you can nominate maximum 3 members	Nomination is mandatory
Toll free number	1-800-222080	1800-180-1111 / 1800-110-001 1800-180-1111 / 1800-110-001