National Pension Scheme

                    

The National Pension Scheme is a good scheme in terms of retirement planning. It makes your coming years safe. To have a regular source of income after retirement is possible through NPS. 

NPS was started in Jan 2004 for government employees. It was opened for all categories of people in 2008.

Proper planning is most important if you want regular income even after retirement. One of the best schemes is the NPS.

• You have to start at the age of 21 years.
• Your monthly investment will be Rs. 4500
• You have to invest for 39 years till the age of 60 years.
• The amount at maturity will be Rs. 2.59 crore if an average annual return of 10%.
• You will get a pension of Rs. 51,848 pm.

The account can be opened with 1000 rupees

Two types of account can be opened under NPS Tier-1 and Tier-2

Tier-1= It is a retirement account

Tier-2= It is a voluntary account, in which any salaried person can start investing on his own behalf.

The contribution has already been reduced from Rs. 6000 to Rs 1000 to keep NPS Tier 1 active

You can run this investment till the age of Rs. 65 years.

After 60 years, 60% of the lump sum amount can be withdrawn.

If the minimum annual investment is not made the account is frozen

You can open NPS online

To open an NPS account. Click on new registration and fill in your details. Select your portfolio and fund. After making payment, your permanent Retirement Account number will be generated.

Tax Exemption

In NPS, customers also get the facility of tax exemption. Tax exemption is available under sections 80CCD(1), 80CCD(1b) and 80CCD(2) of the Income Tax Act. Apart from section 80C i.e. Rs 1.50 lakh on NPS, you can take a further exemption of Rs 50,000. By investing in NPS, you can avail income tax exemption of Rs 2 lakh.

Portable System

You can also transfer your NPS account. Online access is available to subscriber for NPS account through mobile application and system.