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APY or NPS: Know two government pension schemes, know which one to choose between Atal Pension Yojana or NPS

Atal Pension Scheme or National Pension System: If you want a certain amount after your retirement, then you must have some pension plan or else there may be a lot of difficulties in the era of rising inflation. Here we will tell about two such schemes from which you can choose the right pension plan for you. These are Atal Pension Yojana and National Pension System which are both government schemes.

Understand the National Pension System
This scheme was started in 2004 for government employees but in 2009 it was also opened for private employees. Through this, you can invest a fixed amount for a fixed period of time. It has been implemented for people in the age group of 18 years to 55 years. It can be taken by citizens of India and NRIs. From the pension point of view, it is not a guaranteed pension scheme as it is market linked. Apart from government securities, fixed income securities, non-government securities, it also invests in equity.

What is the system of NPS
There are two types of accounts in NPS namely Tier 1 and Tier 2. The difference between the two is that money cannot be withdrawn from Tier 1 account till the age of 60 years. You can withdraw money from Tier 2 account like a savings account.

Special thing related to NPS
According to the special condition of NPS, it is necessary to take at least 40 percent annuity and the higher this amount, the higher will be your pension amount.

Understand the system of Atal Pension Yojana
Atal Pension Yojana was started for the unorganized sector employees and in this a fixed amount is received as pension after 60 years of age. Only residents of India can invest in Atal Pension Yojana. Its holder or subscribers can choose the pension amount depending on their contribution, which can range from Rs 1000 to Rs 5000.

Special feature of Atal Pension Yojana
One special thing in Atal Pension Yojana is that you cannot withdraw money before maturity. There is a provision to close the account before the age of 60, but before the age of 60, money cannot be withdrawn from it. However, after the death of the subscriber, the money can be withdrawn before maturity.

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