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NPS vs Atal Pension: What is better for retirement, know the difference between the two

NPS or Atal Pension: Atal Pension and NPS are both better plans for retirement. The investment made now gives a good pension.

NPS or Atal Pension: National Pension System and Atal Pension Yojana (NPS or Atal Pension). Both are well-known names in terms of pension plans. That’s why people often fall into confusion. Here today we are going to tell you the difference between the two. After seeing this, you can do retirement planning.

Atal Pension Yojana
If you want to get a pension of Rs 5,000 every month after the age of 60, then Atal Pension Yojana is a better option for you. Atal Pension Yojana was launched by the central government in 2015.

It was made for the people of the unorganized sector. Its account can be opened at the age of 40 years. Anyone in the age group of 18 to 40 years can take advantage of the scheme.

It also gives exemption in income tax. In Atal Pension Yojana, you can get a pension of up to Rs 5000 every month after the age of 60 by saving Rs 7 daily. Like any investment scheme, the sooner you join the Atal Pension Yojana, the less money you will have to deposit.

National Pension System (NPS)
After retirement, the government gives pension from this money. There is an option to close the account on retirement or on attaining the age of 60 years.

At the time of closing the account, one can withdraw money in lump sum or as per requirement. With the remaining money one has to buy an annuity plan.

Note that the full amount can also be used to buy an annuity plan. Under Annuity Plan (Annuity), a lump sum amount is given to an insurance company and in return that company arranges to pay a whole life pension.

It can also be understood that if there is 10 lakh rupees in this account and at that time the interest is 6 percent. The company will give you Rs 60,000 (10 lakh X 6%) every year for life by taking Rs 10 lakh. If monthly income option is selected, then Rs 5,000 will be available every month.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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