Pension Plan For Retierment
Pension Plan: In today’s changing times, people have become very conscious about their future. They want that their future is secure along with the present, and they should get a fixed pension even after retirement, for which there are many types of Pension Plans in which you can invest and secure your future. We are going to talk about one such Pension Plan in which you can invest your money and get a fixed income after the age of 70. Let’s know about it –
NPS
NPS is a pension plan that provides you financial security at the time of old age. It provides you financial assistance when you do not have any source of income. By taking advantage of this scheme, you can strengthen your old age financially. You can increase your savings by investing in it and after retirement you can get a fixed income for the rest of your life. Citizens between 18 and 70 years can apply for it.
Purpose of NPS
The purpose of starting NPS is to provide pension to citizens after retirement so that they can increase the habit of saving for retirement and can get a lump sum pension amount after retirement. National Pension Scheme is a government scheme which is market based. At present, many people like to invest in it. It gives you a lump sum amount along with pension. Investment in it is safe. It is a government fund which is managed by Pension Fund Regulatory and Development Authority PFRDA.
Benefits of NPS
- The investor can choose his investment option and pension fund as per his wish.
- Contribution can be made at any time in any financial year as per one’s wish.
- In this, savings are made for retirement so that a fixed amount can be received after retirement.
- A certain percentage of the accumulated amount can be withdrawn after retirement and the rest can be received in lump sum.
- NPS also provides tax benefits under section 80 CCD (1b).
Who can invest in NPS?
- Any citizen of India can invest in it.
- To invest in it, the age of the applicant should be between 18 to 70 years.
- Salaried or self-employed applicants can apply in it.
How much can one invest in NPS?
- In this, the investor should invest at least ₹6000 in a year which has to be deposited till retirement.
- There are two types of accounts in NPS, Tier 1 and Tier 2.
- In Tier 1, you cannot withdraw your money before the completion of 60 years, whereas in Tier 2 account, you can deposit and withdraw money according to your wish.
