National Pension Scheme: National Pension System i.e. National Pension System is a pension scheme of the Government of India. NPS is a type of pension cum investment scheme that guarantees market based returns. NPS is tax-exempt at all three levels – E-E-E i.e. Contribution-Investment-Return and Withdrawal. Talking about returns, NPC has given more than 12 per cent returns during the last 12 years.
Supratim Bandopadhyay, Chairman of Pension Fund Regulatory and Development Authority (PFRDA- PFRDA), has said that the National Pension System has given more than 12 percent returns during the last 12 years. He said that any individual or stakeholder should start investing in this product early to get maximum benefits. This return of NPS is more than double the current retail inflation rate.
Bandopadhyay said that PFRDA offers two pension schemes NPS and Atal Pension Yojana (APY).
At least one thousand rupees can be invested annually in this scheme. You can increase this investment anytime. The biggest advantage of this is that in this you have to pay only one thousand rupees. There is no fixed contribution in this. Whenever you have some savings or extra amount, you can invest it in NPS as per your convenience.
Minimum and Maximum Returns
There are three investment options available in the National Pension System. Equity means shares, government securities and corporate bonds. The returns under equity schemes have been more than 12 per cent during the last 12 years. At the same time, it has been 9.9 percent in government securities. Whereas in corporate bonds it has stood at 9.59 per cent year-on-year despite some debt related developments.
How to open account
Any person can open NPS account in post office or bank. Many banks offer the facility of opening an online account sitting at home. 500 rupees are required to open an account in the bank. Whereas after that Rs 500 has to be deposited once. In this way, the total amount of one thousand rupees is considered as your minimum one thousand rupees deposit.
Monthly pension of Rs 1.50 lakh
In the National Pension System (NPS), you can arrange a monthly pension of up to Rs 1.50 lakh by saving Rs 10,000. If you are 26 years old. At this age, you will have to invest 10 thousand rupees monthly in the NPS scheme. After this, it is mandatory to buy at least 40 percent of the annuity. An average interest of 12 percent is available on monthly investment. In this way the total investment will be 40 lakh 80 thousand rupees. On this investment, you get a monthly pension of about Rs 1 lakh 50.
