NPS: To help you sustain during the golden years of your life - Nidhimehra2812/Mutual-fund-investment GitHub Wiki
The National Pension System (NPS) has been designed as a retirement planning tool which helps in creating a corpus for your retirement. In fact, if you start investing in the NPS scheme from an early age, you can actually create a good corpus for your retired life. The NPS scheme is a market-linked investment scheme which helps you in building an inflation-adjusted corpus for your retirement. Moreover, the scheme allows a range of benefits to ensure that you can easily live a comfortable life in your golden years.
Let’s have a look at the benefits of the National Pension System which makes it an ideal tool for sustainable living post-retirement –
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Ease of investment First and foremost, investing in the NPS scheme is quite easy and simple. Indian citizens as well as NRIs can invest in the NPS scheme if they are between the ages of 18 and 60 years. You can do NPS investment online as well as offline. Doing NPS investment online is simpler as you don’t have to step out from your home and invest in the scheme within a few minutes through your computer or your Smartphone.
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A choice of investment options When investing in NPS, you have two account options to choose from – Tier I and Tier II Account. While the former is mandatory, the latter is optional and allows easy withdrawals. Each account offers you a choice between two investment strategies – Active and Auto Choice investment strategies. Under both these strategies, there are different investment funds. If you choose the Active Choice strategy, you can invest in these funds as per your investment preference and risk appetite. Alternatively, if you choose the Auto Choice strategy, the investment is done in a pre-determined manner in selective funds based on the chosen risk appetite. So, the NPS scheme allows you a range of investment options so that you can invest and manage your investments as per your choice and get maximum returns on investments.
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Tax benefits Investment in the NPS scheme allows you attractive tax benefits, which is why the scheme is favored by many. Investment into the NPS account earns you tax deductions under Sections 80CCD (1) and 80 CCD (1B). Under the former section, you get a deduction of up to Rs.1.5 lakhs which also includes deductions under Section 80C. Under the latter, you can claim an additional deduction of up to Rs.50, 000 by investing in the NPS scheme. These tax benefits help you reduce your tax liability and also create a retirement corpus at the same time.
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Lifelong incomes after retirement The NPS scheme matures after you reach 60 years of age. You can also defer the maturity by another 10 years. On maturity, you can withdraw up to 60% of the accumulated corpus in cash. This money can be used to fulfill your financial responsibilities or to fund your retirement. The amount withdrawn is also completely tax-free giving you the benefit of tax-free income. Secondly, from the remaining corpus, annuity pay-outs are done for your entire life. These pay-outs are guaranteed and can be availed monthly, quarterly, half-yearly, or annually. Moreover, you can also include your spouse to receive joint life annuities wherein the annuity is continued even after your demise if your spouse is alive. These annuity pay-outs give you a source of income after retirement allowing you to live a comfortable financial life.
While the NPS scheme allows different benefits, it is the promise of lifelong incomes and a tax-free corpus on retirement which helps you sustain in the golden years of your life. So, invest in the NPS scheme from an early age so that your retirement is secured. For doing NPS investment online you can choose www.etmoney.com which is a personal finance website. This personal finance website offers you complete solutions for your loans, investment, and insurance needs. You can also invest in NPS through ETMONEY in some simple steps. Moreover, the KYC verification is also done online making it easier for you to open an NPS account right from your home. So, visit this personal finance website and start investing in NPS for a secured and worry-free retirement.