NPS vs APY | 9 Key Points for Good Returns

Looking for in-depth knowledge on both NPS and APY? We got you covered!
For APY Scheme Eligibility & Benefits, click here- https://cleartax.in/s/atal-pension-yojna
For Scheme & Benefits of NPS, click here- https://cleartax.in/s/nps-national-pe...

Retirement refers to the period of your life that you are no longer working and, as a result, may not have a steady source of income. And if your income source ends, you will still have to pay for basic living costs and medical care as you get older. You must construct a savings corpus during your effective working life in order to maintain a financially independent life. This investment will then assist you with fulfilling your post-retirement expenditures. When it falls to retirement planning, there are a variety of investment options like PPF, VPF, Special FD schemes of banks. But apart from these there are two schemes named NPS and APY which are launched and backed by the government of India. The government has implemented both of these schemes in order to provide individuals with a suitable investment platform for retirement planning.

Through this video, let's take a look at what these alternatives are and how they compare and contrast.

The National Pension System (NPS) is a market-linked retirement savings plan that provides market-based returns. Until the age of 60 you can invest in this scheme. The NPS scheme offers four different categories of funds and two different investment methods. You can invest in any of four available funds using the Active choice strategy, or you can use the Auto choice strategy and to get your investments automatically allocated to the various funds. The scheme's return is determined by the financial market. You can withdraw 60% of the accrued corpus in a lump sum at maturity, and the remaining 40% of the corpus will pay you annuities for the rest of your life.

The Atal Pension Yojana (APY) scheme, which was introduced by the government, is also a retirement-oriented fund. The scheme sought to support low-income individuals in the unorganised sector with assured pensions. You can invest in the scheme before you reach the age of 40, and the scheme matures until you reach the age of 60. There are five options for fixed pension amounts under the system. The amounts vary between Rs 1000 and Rs 5000. You select the amount of pension you receive when you invest in the scheme. The pension amount is chosen based on age, and the amount you will contribute to the plan is determined based on the frequency of contributions.

Don't forget to subscribe, and leave your valuable feedback!

#NPS #APY