The rising age of employed individuals concerns them about retirement. To ensure a secure retirement, you ought to begin investing in the NPS (National Pension Scheme) as soon as you land a job. If you haven’t begun yet, you ought to begin at the earliest opportunity.
In fact, the NPS scheme operates under the central government, allowing for invested amounts and the returns gained to be entirely tax-exempt. Today we are providing you with detailed information about the NPS scheme. Additionally, we will explain how additional advantages can be gained from this program.
When was the NPS scheme initiated?
The central government initiated the NPS program for government workers in 2004 and later introduced it for the general public in 2009. You can invest in the NPS scheme through two methods, by selecting either the Tier 1 or Tier 1 option to begin investing.
Who is eligible to invest in an account
The NPS program provides attractive returns, adaptability, and tax advantages. This program allows investments from individuals aged 18 to 60. An NPS account can be initiated either online or offline. In offline mode, you need to visit the post office or bank, whereas online, you can begin investing by setting up an account from the comfort of your home.
How to put money into an NPS account
NPS accounts are of 2 types – Tier 1 and Tier 2. A Tier-1 account needs to be opened. Only at that point will you be able to open a Tier-2 account. Tier-1 is a compulsory pension account from which money cannot be withdrawn, whereas Tier-2 is an optional savings account that allows the subscriber to withdraw funds at any time they wish. You can begin investing in this program with Rs 1,000.
Returns in NPS Scheme
The returns under NPS are completely market-based i.e. based on the NAV of the pension fund schemes. The profit depends on the overall contribution made and investment growth till the time of exit from NPS.
