What is the difference between a retirement plan and a pension plan?

Pension plans are a component of retirement planning and involve financial planning to create savings that grow to yield steady income on retirement. The goal of pension plans is to replace regular income that stops after retirement to enable the retiree continue to live comfortably. Pension plans are available from insurance companies, mutual fund houses and the government of India. Retirement planning involves choosing from various pension plans from these sources. Fund houses also offer retirement savings plans where investors can accumulate savings for retirement. So retirement insurance policy focuses on accumulation, whereas pension plans focus on both accumulation and steady income on retirement.


How to choose the right retirement plan?

Once you decide on investing in a retirement insurance policy, consider the following: • Whether the plan offers the option of long-term savings • Do you have the flexibility to select retirement /vesting age •…


Who can join Atal Pension Yojana?

Anyone who is in the age group of 18 to 39 years and 364 days is eligible for Atal Pension Yojana. It means if you complete 40 years, you are not eligible.

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What is Atal Pension Yojana?

Atal Pension Yojanaor APY, a pension scheme for Indians in the unorganized sector. According to this scheme there is a guaranteed minimum monthly pension of Rs.1000 to Rs.5000 on retirement age based on the subscriber’s…

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What are employment based pension plans

An employment-based Pension plan is retirement insurance plans or annuity plans where the employee allocates a portion of the current income to retirement income, usually tax exempt. These plans are of two types. Defined benefit…

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Can I get NPS if I am self-employed?

Yes. All Indian residents in the age group of 18-60 years can invest in the NPS. The scheme is mandatory for government employees and optional for private employees and self-employed.

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What happens if I move residence to another city?

The NPS is portable. Subscribers can keep the same PRAN regardless of whether they move residence or location. The same PRAN is valid across India for the subscriber to continue their investment via a local…

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Does the NPS send a monthly statement?

Yes. NPS sends a physical annual statement with details of unit holdings via the CRA within 3 months of the closing of each financial year.

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What will be my rate of return for my contribution?

The pension fund manager invests your savings in a scheme chosen by you. Investment allocations directly impact the growth of your pension fund. The rate of return depends on the return from the asset classes…

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Will the government contribute to my NPS account?

No. The Government will not contribute to your NPS account. However, if you have opted for the Swavalamban scheme, government contributions may be applicable subject to conditions of the scheme.

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Whom to contact if I have a grievance about my NPS?

A grievance about your NPS account can be registered via the Call Center or IVRS at a toll free phone number using T-PIN. There are dedicated call center executives. Grievances can also be registered via…