National Pension Scheme (NPS)
A government-backed retirement savings scheme regulated by PFRDA.
NPS is designed to provide long-term financial security by encouraging systematic savings during your working years, with the goal of creating a pension corpus for retirement. NPS is eligible for all investors between 18 and 70 years of age.
Tier Options
- Tier I (Mandatory): A retirement account with restrictions on withdrawal.
- Tier II (Optional): A flexible savings account with easy withdrawals. It is market-linked offering options in equity, corporate debt, government bonds, and alternative assets.
Maturity & Returns
At maturity (age 60), you can withdraw up to 60% of the corpus as a tax-free lump sum. The remaining 40% (minimum) must be used to buy an annuity plan for a monthly pension.
You can open an NPS account through any of the pension fund managers such as HDFC, ICICI, SBI. Returns over the long term typically vary between 12% to 15% depending on the equity/debt allocation.
Plan Your Retirement
Let us help you set up an NPS account with the right fund manager and asset allocation for your retirement goals.
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