13 Differences between Atal Pension Yojana (APY) and New pension System (NPS)


Both Atal Pension Yojana (APY) and New pension System (NPS) are the schemes which are supposed to provide security after retirement. The Security in both the schemes is to be provided in the form of pension.

Difference between APY and NPS:

  1. Joining Age – The Age of joining in Atal Pension Yojana is from 18 to 40 years whereas in New Pension System Age of joining is from 18 to 55 Years.
  2. Who can join – Only resident Indian can join in APY but in NPS any Indian including NRIs can also join.

    3.Pension slab – In APY there are five pension slabs i.e Rs 1000/-,Rs 2000/-,Rs 3000/-,Rs 4000/-,Rs 5000/- where as in NPS it is decided by the Pension Fund Manager’s performance. 50% amount is paid at the time of retirement and rest is paid on yearly basis.

  1. Guaranteed Pension– In APY there is a guaranteed pension after retirement. In NPS there is no guaranteed pension. In NPS Safe and reasonable market based returns over the long term can be expected.
  2. Type of account – In APY there is only one type of account. In NPS there are two types of account – Tier-I and Tier-II types of accounts.
  3. Premature Withdrawal – In APY there is no premature withdrawal facility except death or special conditions. In NPS Premature withdrawal is allowed, though only allowed in Tier-II account.
  4. Government Contribution – In APY there is 50% or max of Rs 1000/- contribution from the Government if the account is opened on or before 31 Dec 2015 where as in NPS there is no such Government contribution available.
  5. Tax Benefit- In APY there is no tax benefit, where as in NPS you can avail a Tax rebate upto Rs 2, 00,000.
  6. Reasons to join- In APY you can join only to get pension after 60 years, where as in NPS there are three reasons which are listed below.
  • To provide old age income.
  • Safe and remarkable return over long period.
  • Extending old age security coverage to all citizens.
  1. Fund Manager – In APY there is no option to select Pension Fund Manager where as in NPS there is an option to select your own Pension Fund Manager. There are eight Pensions Fund Managers whom you can choose to manage your contributions.
  2. The Eight Pension Fund Managers are :
  • HDFC Pension Management Co.Ltd
  • ICIC Prudential Pension Fund Management Co. Ltd.
  • Kotak Mahindra Pension Fund Ltd.
  • LIC Pension Fund Ltd.
  • Reliance Capital Pension Fund Ltd.
  • SBI Pension Funds Pvt. Ltd.
  • UTI Retirement Solutions Ltd
  • Pension Fund by Birla Sunlife Insurance Co. Ltd.

   10.Permanent Account – Once you are enrolled in the NPS Yojana, you get a Unique Permanent Retirement Number (PRAN). In this way you can operate your account from anywhere within in the India. There is no such PRAN in APY scheme. The monthly contribition in APY is auto debited from your saving account.  

  1. Where to open account- In APY you can open in any Indian bank where you have a saving account, where as in NPS you can open the account at Listed POPs.
  2. Toll free Number –The Toll-free number for NPS is 1-800-222080 whereas the National toll free numbers for APY is 1800-180-1111  /  1800-110-001.

APY official Website is http://jansuraksha.gov.in/

Whereas for NPS the official Website is  http://www.pfrda.org.in/


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