The NPS scheme is a scheme related to the government and it works as a voluntary investment scheme for government, private sector employees.
Best Pension Plan: For a better tomorrow, we should invest from today itself. Today’s investment helps you to prepare a huge amount for your tomorrow. And the way inflation is increasing, there is volatility in the market, in such a situation it becomes necessary to invest.
Today there are many such schemes by investing in which we can secure our tomorrow. We can deposit a substantial amount especially for retirement.
National Pension Scheme i.e. National Pension Scheme is the best means of investment to create a retirement fund. NPS scheme is a scheme related to the government and it works as a voluntary investment scheme for government, private sector employees.
Here we are telling how you can get a decent amount every month for retirement by depositing a fixed amount every month in NPS-
Where can you invest
In this scheme, your personal savings are converted into a pension fund. The money invested in this scheme on behalf of the Pension Fund Regulatory and Development Authority (PFRDA) is invested in government bonds, bills, corporate debentures and shares. The amount you invest in this scheme, you get an increase year after year only on the return you get.
Two options
While starting the NPS account, you get two options – Active and Auto mode option. Here you have the option of investing in maturity income for annuity. An annuity is an insurance product that generates regular income. It is used as a part of retirement portfolio. This percentage of buying annuity decides how much pension you will get.
Rules for Annuity
- Generally there are two types of annuities. One is Immediate Annuity and the other is Deferred. The payment starts immediately after the initial investment in Immediate Annuity. It is considered a good option for people approaching retirement age.
- Annuity is not paid regularly in Deferred Annuity. Instead, money is raised. Policyholders can convert the Deferred Annuity into Immediate Annuity if required.
- As per the rules of NPS, it is necessary to buy an annuity from at least 40% of the total NPS maturity amount. On the other hand, if someone wants to increase this limit, then they can increase it.
- Apart from this, you can also buy the annuity using 100% of the maturity income. Every month is a good way to get more pension.
- According to experts, even low-risk investors can invest in their NPS account in thousands every month and earn an income of Rs. On the other hand, if NPS customers use the Systematic Withdrawal Plan to increase their monthly income after retirement, then this pension will be available.
