National Pension Scheme (NPS)

The National Pension Scheme (NPS) is a pension and investment system developed by the Indian government to give long-term financial security to Indian residents. It provides an attractive long-term saving alternative with a secure and regulated market-based return for correctly planning your retirement. The Pension Fund Regulatory and Development Authority (PFRDA) regulates it, and it provides a secure but transparent platform. When people reach retirement age, they get a lump sum payout as well as regular income, allowing them to live a stress-free retirement.

Why should one invest in NPS?

  1. Tax Saving When you invest ₹2 lakh, you can save up to ₹62,400 in taxes each year and receive a tax-free amount at maturity when you reach the age of 60.
  2. Cost-Effective A low-cost investment with a larger return. Although the initial investment may be little, the greater compounding aspect of these plans allows an individual to earn significant profits at retirement.
  3. Disciplined Investment |Flip for content: Until you reach the age of 60, your investment is locked in. A minimum annual investment of Rs.1,000 is mandatory.
  4. Returns are guaranteed These programmes provide better yields than other investments such as PPFs and FDs. The percentage of NPS invested in equities, on the other hand, may not provide guaranteed returns.
  5. Lifetime source of income Inflation is having a negative influence on every part of our life. So, in order to continue your previous lifestyle, you’ll need a steady source of money. NPS provides that choice in the form of a pension throughout the duration of your retirement, making it a lifesaver at a time when you most need financial assistance.
  6. Professionally managed Your funds are invested and managed by the top pension fund managers in India.

The Advantages of Investing in NPS

An investor has access to the following benefits by investing in the National Pension Scheme.It is a voluntary initiative that is accessible to all Indian nationals between the ages of 18 and 60.The plan offers a lot of flexibility, allowing you to pick and select your investing possibilities.You may also choose from a variety of investment funds.The National Pension System (NPS) account may be accessed from anywhere in India.Transparent investment guidelines are part of the plan.It assists you in planning your retirement and ensures that you will receive guaranteed profits when you retire.Under section 80C of the Indian Income Tax Act, the subscriber can claim tax advantages on the payment paid to this plan.

Journey with NPS

  1. Start at 18 yrs: Begin contributing now and continue every year until you reach the age of 60.
  2. Till 60: It’s time to retire. Withdraw up to 60% of your savings tax-free and invest the remainder for recurring income.
  3. Rest: For a stress-free retirement, take advantage of a monthly pension.

In what areas are money invested within NPS?

Depending on your investing strategy and age, your money is invested in a variety of asset classes (Equity, Government bonds, Corporate debts, Risk)

eNPS Facilities

  1. Registration: To start an individual pension account with the NPS, you must first register. An Indian citizen between the ages of 18 and 70 can open a ‘Tier I’ or ‘Tier I and Tier II both’ account using this option, however an NRI/OCI can only register a ‘Tier I’ account. Using this option, you must OTP Authenticate eSign your Subscriber Registration form.
  2. Contribution: To make a Subsequent Contribution to your Tier I or Tier II account under NPS, click Contribution. This option is also available to Swavalamban account users who want to make a Subsequent Contribution. CRA fees will apply to such transactions and will be deducted from the Subscriber’s NPS account separately as units. T+2 working days will be used for the investment (subject to receipt of clear funds from PGSP)
  3. Tier II Activation: is used to activate a Tier II account under the NPS. This option is available to all existing Tier I subscribers who have an active Tier II account. There are no fees associated with the activation of a Tier II account.
  4. Get Same Day NAV (D-Remit): is a service that allows you to register for a Virtual Account number and make smooth investments straight from your bank account. The Direct Remittance (D-Remit) technique can be used to invest in NPS on the same day (T+0) (as per pre-defined cut-off time for receipt of funds at Trustee Bank).
  5. Annual Transaction Statement on email: For obtaining your Annual Transaction Statement for NPS transactions on your registered email ID, choose Annual Transaction Statement on Email.