National Pension Scheme Retirement Planning Investment

National Pension Scheme Retirement Planning Investment
National Pension Scheme Retirement Planning Investment
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“National Pension System, NPS, is defined as a contribution based Pension Scheme launched by the Government of India. It is a market-linked voluntary contribution retirement scheme. By investing in NPS you can build a retirement Corpus.”

We can live a peaceful and a wealthy life when we have health and can able to employ. But after the retirement and becoming old it may be difficult to meet our various needs. because we may not have sufficient or no income. In such cases we may need to depend others to do our various needs. But if we need not to depend others in those times we must depend on our pension.

In earlier pension were only provided to Government Servants. but the scenario has changes. Now there are many pensions schemes available and Anyone can join in these  schemes. To avail this we must invest some money while we are working and after we retire we will receive some sort of earnings. Such type of pension plan is NPS.

The central Government in 2004, started this NPS, with a view of allowing every citizen of India the benefit of pension.  in the initial stage, this was only available to central government employees. But in 2009 it has opened to each and every citizen of India. The main eligibility of this pension scheme is that, he or she must be an Indian Citizen with an age in between 18 and 65, and any individual with this eligibility can start this by simple investing 500 rupees.

There are two category in NPS. Tier I and Tier II. Any citizen can be a Tier I holder. But only a Tier I holder can start Tier II account. The maximum amount that can be invested in both of these cases are same. but in case of minimum amount 250 is for Tier II holder and 500 for Tier I holder. The main benefit of this pension scheme is the tax benefits, a tier I holder can avail a tax benefit of rupees 2 lakh while the tier II holder doesn’t have any tax benefits. This two categories are categorized on the basis of the withdrawal period of the pension. For a Tier I holder he cannot withdraw the amount until he reaches the age of 65, but an exception is given that there may be a special case like the cost of treatment of any family member or  for the marriage of the daughter, then these situations the holder can withdraw the money limited to 3 times in the whole maturity period. But in case of Tier II holder, he can anytime withdraw the amount that he has invested, and that is the main reason holder does not entitled any tax benefits.

Lets have a look at the tax benefits of this NPS. If the holder is a salaried person, then 10 percentage of the salary is tax redumpted. and if you are a business man the he also entitled a 10 percentage tax redumption in the tax or  1.5 lakhs in a financial year whichever is less.

Now lets look how to invest in NPS. There are many options to invest in NPS scheme. we can invest through the website of the NSDL, or through PayTm or through ET Money app etc. We can also invest in offline mode in through post office or through the bank.

For more details on investing in NPS through ET Money watch this video. https://www.youtube.com/watch?v=YFP–Cosl4E&feature=youtu.be.

This will guide you best how to invest in NPS through ET Money.

 


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