How to invest National pension scheme 

 

     Today I would like to inform you about a central government scheme. It is called the National pension scheme. It is a voluntary defined contribution pension system in India. It is a long term investment plan for retirement.

        It is a pension scheme for public and private unorganized  sector employees.  The employees can invest  an amount during  their employment  period.  Employees can withdraw  a part of corpus in a lump sum and  you will receive the remaining amount as monthly  pensions.

       A portion of the National pension scheme  goes to equity. You can change the fund manager also. It allows deduction of up to Rs 2 lakh. You should  continue investing until the age of 60 yrs.

      It is a great retirement savings scheme. Its aim is to save children’s  education ,marriage  etc.This pension scheme is available  to all Indian citizens  between the ages of 18 and 65 yrs.

      We will get a 12 number permanent retirement account number. We can use this account anywhere in India. We can withdraw the money 3 times. 25 percent of the amount  paid can be withdrawn after 3 years. We can download the NPS application phone.It is  a central  government  scheme. 

      It is a safety investment. It is under the pension fund regulatory and development authority. We will get good credibility  from this scheme. It is a market linked instrument. We can expect returns of 8 -10 %yearly.

     We should invest minimum Rs 500 mandatory after commencement. Withdrawals are allowed only 3 times,with a gap of minimum  5 yrs.You can’t terminate this scheme for the initial 10 years. If investment  growth is above Rs 1 lakh, you can only terminate  20% in hand. Remaining  80%is used for purchase of an annuity plan and you can be received  this amount as monthly pension. 

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