NPS is a long-term investment plan that allows individuals to contribute regularly towards their retirement savings. The funds are managed by professional fund managers under the Pension Fund Regulatory and Development Authority (PFRDA). On maturity, a portion of the corpus can be withdrawn, while the remaining amount is used to purchase an annuity for a steady post-retirement income.
Types of NPS Accounts
- Tier I Account – Retirement Savings : A mandatory account with restricted withdrawals to ensure long-term financial security.
- Tier II Account – Flexible Savings : A voluntary savings account with no withdrawal restrictions.
Key Features of NPS
- Regulated & Secure : The scheme is governed by PFRDA, ensuring transparency and security of investments.
- Tax Benefits : Contributions are eligible for tax deductions under Section 80CCD(1) & 80CCD(1B), with additional benefits for employers under Section 80CCD(2).
- Market-Linked Returns : Investments are managed in diversified asset classes, including equity, corporate bonds, and government securities, offering the potential for higher returns.
- Flexible Investment Options : Choose between Active Choice (self-managed asset allocation) and Auto Choice (age-based investment strategy).
- Affordable & Low-Cost : NPS has one of the lowest fund management charges, making it a cost-effective retirement solution.
- Systematic Retirement Income : On maturity, a portion of the accumulated corpus is converted into an annuity, ensuring a regular post-retirement income.
Start investing in NPS today to build a financially secure future. Our experts will guide you through the process, ensuring the right investment strategy for your needs.