Everyone wants to live a comfortable life after retirement. To achieve this, one should start investing while working. The National Pension Scheme (NPS), launched by the government, is a good option for retirement planning. This scheme was introduced by the Central Government in 2004.
Investment Options in NPS
Investments in the National Pension Scheme (NPS) can be made in two ways. The first is Tier-1, which is a retirement account. The second is Tier-2, which is a voluntary account. After the age of 60, you can use 60% of the total investment for retirement, while the remaining 40% can be used to purchase an annuity.
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What Happens if the NPS Account Holder Dies?
If the NPS account holder dies before retirement, the legal heir may still receive the benefits. The entire amount from the NPS account will be paid to the nominee. The nominee can either take the funds as a lump sum or opt for a pension.
மக்களுக்கு பயன்பெறும் மூன்று மத்திய அரசு ஓய்வூதிய திட்டம்.
1.National Pension Scheme (NPS)
2.Atal Pension Yojana (APY)
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What Happens if There is No Nominee?
If the NPS account holder has not nominated anyone, the funds in the account will be transferred to the legal heir or a family member.
Documents Required for Claiming NPS Funds Without a Nominee
If there is no nominee, the family members must provide a succession certificate. This certificate must be submitted to the Revenue Department. After verification, the amount in the account will be handed over to the legal heirs.
Documents Needed for NPS Withdrawal
If the heir needs to withdraw funds from the NPS account, they will need to fill out the death withdrawal form available on the official NPS website (www.npscra.nsdl.co.in). Required documents include:
Succession certificate
KYC documents
Death certificate
Bank account proof