One of the things that everyone wants is a comfortable retirement life after finishing a job. But many are often left wondering how to find the money they need for later life. A person with a government job does not need to have such a fear because after retirement life they will get a definite amount of pension every month. But those working in private companies and other workers do not get such benefit. That is why everyone wants to be able to be a part of such a project. So we were going to learn about a pension benefit scheme that is available to workers working in such private institutions and elsewhere under the government.
The idea of such a pension for all is being realized through the National Pension Scheme under the Central Government. That is, after a 30-year-old invests Rs. 10,000 in each month,Since the stock market is invested by the government, there will be no problems in this. But there are some things to be aware of before becoming a part of such a pension scheme.
That is, the first thing to know is what credibility is. Mainly ordinary people are part of such a scheme and therefore there is a fear of losing money. But since NPS is run by the government in this way, it is completely secure. The NPS project was launched in 2004. Until 2009, only those in government employment were able to avail the benefit. Since 2009, anyone has been able to be a part of it.As the Pension Fund Regulatory and Authority is a part of the government, these funds are managed by the government itself. So the money you invest is completely safe in the hands of the government.
Who can be a part of the project?
Any Indian citizen between the ages of 18 and 55 can deposit money in NPS. In addition, those who run businesses in government and private companies can be part of the scheme even if they are working abroad.
Once you have invested money like this every month, to know the return you will get from it, the first thing to understand is that NPS is a market linked instrument. Any amount you pay will be invested by the government into a few bonds in the stock market and therefore you will not receive an exact amount. But you will definitely get a certain amount for the money you give.
The government invests the money you contribute into four main asset classes: G, C, E and A, which can be classified. Of these, G class refers to government bonds. Somehow the money we give is used for the needs of the government. Therefore, there is no risk involved. Class C investments go to corporate bonds. That is why we give our money for corporate companies. Therefore, it can be considered as a low risk area. E class invests in the equity sector.
This means that the money will be used to buy shares of the largest companies in India. Purchasing shares in this way will essentially yield a good return. Good companies invest the selected amount and therefore only minimal risk is involved. Only 5% of the amount you invest is invested in the risk area. And you will only come to Class A if you select. You can choose which of these classes you want. Of course this is a much safer way.
Your funds are managed through pension fund management. That is, the amount you pay is paid by the government-enabled pension fund managers, including LIC, HDFC, uti, KOTAK, ICICI, SBI and ADITYA BIRLA CPITAL. The most secure pension fund managers in the picture are the ones who manage the government payments very wisely. Also, you can choose your own pensimanagers. Once you have opted for NPS it is difficult to pause or withdraw the amount invested. This means that since it is a retirement pension plan, it works in a pensionable manner. Therefore, when choosing such a plan, be sure to consider whether it is possible to continue.
It must be at least three years from the date of NPS to withdraw the amount in case of an emergency before the age of 60 years. if you need to withdraw money in this way, you can only withdraw 25 per cent of the amount you have invested. Withdrawals can only be made three times in a five-year gap. Withdrawing the entire amount before the age of 60 cannot be terminated within the first ten years if it is to be stopped. But if you have invested only Rs 1 lakh in these ten years, it can be fully withdrawn. But if you have invested over Rs 1 lakh after ten years, you will be able to withdraw only 20 per cent of the amount you have paid. The remaining 80 percent goes to an annuity plan. This amount can only be withdrawn as a pension every month. Those who want to join such a pension scheme after learning more about it. Watch the video to know more.