Differences in National pension scheme and Atal pension yojana
I would like to share with you about a scheme where a certain amount of money reaches your hands every month after retirement. This is a central government project. That project is called APY (Atal pension Yojana). Let us compare NPS with APY.
We need a source of income after retirement. This pension will help us to meet our needs without depending on others. The minimum pension is Rs 1000. Maximum pension is Rs 5000. We will start getting pension from pension yojana after the age of 60 yrs.yYou will receive a pension after the age of 60 yrs depending on your current age and the amount you invest with it.
Suppose you are 18 years old. Supposed you invest Rs 42 / month. You will get a pension of Rs 1000 after the age of 60yrs. We can build a pension corpus of one lakh and seventy thousand rupees.
If an 18 yrs old person pays Rs 84 / month, At the age of 60yrs ,we will get a pension corpus of Rs 3,40,000 and a pension of Rs 2,000 per month.
If an 18 years old person pays 126/ month, at the age of 60 yrs,we will get a pension corpus of Rs 5,10,000 and a pension of Rs 3,000 per month.
If an 18 years old person pays 168/ month , at the age of 60 yrs, we will get a pension Corpus of Rs 6,80,000 and pension of Rs 4,000 per month.
If an 18 years old person pays 210/ month, at the age of 60 years ,we will get a pension Corpus of Rs 8,50,000 and pension of Rs 5,000 per month.
The amount to be paid increases with age. If you are 39 years old,you will get only Rs 1000 ,if you pay Rs 264 per month.
Payable amount pension
Rs 528 – Rs 2000
Rs 792 – Rs 3000
Rs 1054 – Rs 4000
Rs 1318 – Rs 5000
From July 2020, you can increase or decrease your pension amount at any time. After joining ing this scheme, you will have to pay a penalty in case if you are unable to pay the amount.
Penality charged up to Rs 100 – Rs 1/ month
Rs 101 – Rs 500 – Rs 2/ month
Rs 500 – Rs 1000 – Rs 5/ month
Above 1001 – Rs 10/ month
Your account will be frozen if you do not pay within 6 months of becoming a member of the Atal pension plan. If you do not pay for one year ,your account will be closed and you will receive a refund of the amount and interest you paid. This pension scheme gives guarantee of how much pension we will get. If the player dies,the next heir will receive it. Similarly this pension amount is tax deductible. AAY gets tax reduction of Rs 50,000 a year
Age limit 18 -40 yrs
Must have invested in this scheme for at least 20 years.
Must have a savings account.
Must have an Indian citizen.
You can set it as an automatic debit from your bank account.
You can join this Atal pension yojana from your nearest Bank or post office. But expatriates can’t join this scheme. But you can continue both NPS and APY.
- People between the ages of 18 and 55 can join the NPS. NRI can join NPS(National Pension Scheme).
- NPS does not guarantee how much pension you will get.
- In NPS, we can get tax benefit up to Rs 2 lakh per year.
- We have the freedom to choose as we wish in NPS.
- We can invest any amount of money in NPS.