National Pension Scheme/ System (NPS):
- Plan you retirement in a best way, by saving the money while you were earning with good rate of interests, contribute to NPS account on Subsequent bases
- This scheme is mandatory for govt employees and optional for private employees and for traders
- The govt of India initiated National pension scheme from 1st may 2009. PFRDA has authoritative rights to manage NPS accounts
- All head post offices are identified as point of presence (POP)
- National pension scheme is very popular and identified as good social security scheme to meet the financial needs, after attaining age of 65 years
- A minimum of 1 transaction need to be done in a year towards contribution of NPS scheme
- A high social security scheme to help you at senior citizen age group, so plan your retirement and live your life with no tensions at the age of above 65.So save now and secure your old age
Features of National Pension Scheme/ System
- Initial contribution is Rs 500 with Registration
- Minimum contribution is 500 Rs
- Minimum deposit in a year i.e 500 other than tier 2
- There is no maximum limit for contributions
- Registration charges- 200 Rupees
- Can make payments through cash, cheque, DD
Types of accounts
- Tier 1 & Tier 2
- Tier 1 accounts are mandatory accounts activated for govt employees maintained by their DDOs
- Tier 2 accounts are activated for govt servants after 01.01.2004
- Eligibility Criteria: Citizens who were not comes under any NPS Sector & Age between 18 & before 65 years
Review of National Pension Scheme / System:
Positives of National Pension Scheme / System
Positives of National Pension Scheme / System
- High interest rates comparing with other schemes
- Income tax benefit
- Additional 50000 can avail tax benefit
- Subsequent contributions
- A good social security scheme helps to secure your old age
Negatives of National Pension Scheme/ System
- Contributions need to be done more than 15 years
- Our old age is not in our hands
- You may not able to with draw money before 65 years of age
- Transaction Charges where levied subject to NPS scheme
