Is the Atal Pension Yojana still worth it in today’s economy?
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I’m reviewing my retirement plan and wondering if the Atal Pension Yojana is still worth it. With prices rising so quickly, will a fixed ₹5,000 pension even be enough to buy groceries in 20 years? Would I be better off investing that money in something like the NPS, where it can actually grow, even if there’s no 'guarantee'?
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APY offers a guaranteed pension, but it doesn't keep up with inflation. NPS is market-linked, offering better growth to beat rising costs.
From a tax perspective, the Old Regime is the best option: you can deduct up to ₹1.5 lakh for both, plus an extra ₹50,000 exclusively for NPS. In the New Regime, you lose these personal deductions, but employer contributions remain tax-free. Use APY for basic safety, but choose NPS for better returns and higher tax savings.