ABOUT NPS

The National Pension System, also known as New Pension Scheme, is a defined contribution retirement scheme, regulated by the PFRDA. It helps you build a retirement corpus in a systematic manner during your working life. On retirement, you can withdraw up to 60% of the corpus as a lump sum amount, while a minimum of 40% has to be invested in annuity schemes. Investment in annuity ensures you a monthly income in the form of pension. To summarise, NPS comes with the dual advantage of saving tax and assuring a regular income in the future.

     Just Investing in NPS

     Nearing Retirement

     Secure and Enjoyble Life

How NPS Works?

  •    Under the NPS, an individual’s savings is pooled in a pension fund.
  •    These funds are invested by Pension Fund Regulatory and Development Authority (PFRDA) regulated professional fund managers as per the approved investment guidelines in the diversified portfolios comprising of government bonds, bills, corporate debentures and shares.
  •    These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.

Key Benefits of NPS

Tax Benefit

Get additional tax benefit upto Rs 50,000 (Employee contribution) u/s 80CCD(1B) & 10% of Basic + DA (Employer contribution) u/s 80CCD(2) or over & above rupees 1.5lakh (u/s 80C).

 

Regulated

Gets protection as it is regulated by PFRDA, which is backed by the Indian Government

 

Flexibility

You can switch between investment options once a year.

 

Beats Inflation

You can beat inflation by earning market linked returns if you opt for equity investment.

 

Systematic Saving

You can start saving as low as Rs 500 per transaction and Rs 1,000 per year.

 

No Upper Limit

You can plan your real retirement returns based on your requirements as there is no upper cap on investments in NPS.

 

Cost Effective

The cost-adjusted returns of the NPS can be quite attractive in the long run

 

Investment Options

You get two options to choose from, either active choice or auto choice investment options in NPS.

 

Is NPS beneficial for HNI’s as well?

Yes, its best plan for those individuals (HNI’s) who are into @30% tax bracket. The additional deduction is a big incentive to investors. Someone in the 30% tax bracket (earning over Rs 20 lacs per annum) will be able to save up to Rs 15,450 in tax.