Atal Pension Yojana (APY) Vs National Pension Scheme (NPS)

Planning and investing for retirement is a vital step to take in life. Thus, one should make sure it has chosen the right pension option that suits its requirement to lead a good retired life. 

Fortunately, India's Government has created two pensions schemes, National Pension Scheme (NPS) and Atal Pension Yojana (APY). The individual can opt for any of the two schemes it desires based on its preferences and the benefits provided in the schemes. Both the schemes ensure to provide financial security during the retired life.

The table below describes briefly the difference between NPS and APY:





Age limit

18-40 years

18-60 years

Minimum Investment

Rs. 42 per month in order to get a minimum of Rs.1000 per month as pension later on.

Rs. 500 per contribution, Rs.1000 per financial year.

Premature Withdrawal

Not allowed. But the option is available only under certain circumstances.

Allowed only in case of Tier 2 accounts.



Pre-defined in the range of Rs.1000 to Rs.5000

Returns depend on market conditions.

Targeted Sector

Unorganised Sector

All individuals, whether in organised or unorganised sector.

Government Contribution


Govt will provide some monetary support to the investor.

No government support, all contributions will be made only by the investor.



No option of choosing the investment.

Investor has options in which it can to choose to invest their funds.


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