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.

To create some emergency funds, you can use the feature of auto-debit savings, which means some amount of money is automatically deducted from your salary account to be transferred to some other high-interest savings account. Since you are living with your parents, try to save more money. You can also invest some money in some low-risk equity funds.