Whether you are actively working or passively working, you’re earning income currently. You can’t earn after a point of time and may have to retire. But even after retirement you need income to live. Maybe you don’t want to or aren’t in a position to ask for financial assistance from someone. India’s On call National Pension Scheme (NPS) Advisory Portal, Moneymindz advices you to think about this situation and plan so that you don’t need to face such situations and get a comfortable retired life.
If you ever wondered how one can lead a comfortable life after retirement, India’s Online National Pension Scheme (NPS) Financial Advisory Portal, Moneymindz has the answer for you. Investing in National Pension Scheme while you are working will create a nest egg for your retirement.
What is National Pension Scheme?
National Pension Scheme is a voluntary defined contribution pension system. The decision started when the Indian Government made a decision to halt defined benefit pensions for its employees. This scheme opened up for all Indian citizens soon after. India’s First Free Online Financial Advisory Moneymindz observes that NPS closely resembles the 401(k) plans. This helps you set aside a portion of your current income for retirement. It is a voluntary saving scheme backed by the Government of India.
Features of National Pension Scheme
- Indian citizens including NRIs between the ages of 18 and 60 can invest
An Indian citizen whose age is between 18 and 60 can invest in National Pension Scheme regardless of his residency (Resident or Non-Resident).
- Minimum contribution is Rs 1,000 per year
You are allowed to invest a minimum of Rs 1000 annually. Earlier the minimum amount was Rupees 6000. To make it easier for investors, the amount was reduced to Rupees 1000.
- Invested amount given as pension during retirement
When you invest money in NPS you are actually giving your future self monthly pension. Upon surrender of the policy or when you retire, you get pension from the investments.
Merits of National Pension Scheme
- Ease of investing
National Pension Scheme is low cost in nature as a retirement benefit plan. So you can invest with limited funds.
- Tax Deduction is available
If you contribute up to Rupees 50000 you are eligible for tax deduction under Section 80 CCD (1B).
- Broad coverage
Resident Indians and Non Resident Indians who are above the age of 18 and below the age of 60 can invest in NPS.
NPS is a good product for you to invest in for your retirement.
For more information visit www.moneymindz.com or give a missed call to 022-62116588