Lifestyle

National Pension Scheme: How can NPS benefit post-retirement?

Image credits: Freepik

What is NPS?

Administered by the Pension Fund Regulatory and Development Authority (PFRDA), NPS is a voluntary, market-linked contribution scheme managed by professional fund managers.
 

Image credits: Freepik

What is NPS?

Upon retirement or exit, at least 40% of the contribution is used to buy an annuity for a lifetime pension, while the rest is given as a lump sum.
 

Image credits: Freepik

Benefits of NPS

Check the benefits of the NPS scheme, providing a secure retirement with tax advantages and investment flexibility.
 

Image credits: Getty

Tax benefits

Contributions to NPS qualify for tax benefits under Section 80C of the Income Tax Act, along with additional deductions under Section 80CCD (1B).
 

Image credits: Pexels

Pension Benefits

Upon retirement, subscribers can withdraw up to 60% of the corpus as a lump sum and allocate the remaining 40% to purchase an annuity, ensuring a regular pension income.
 

Image credits: Pexels

Market-linked returns

NPS invests in a diversified portfolio of equities, bonds, and government securities, offering market-linked returns to subscribers.
 

Image credits: Freepik

Annuity Options

Subscribers have the flexibility to select from various annuity plans and providers, allowing them to tailor their pension income according to their preferences.
 

Image credits: Freepik

Transparency

NPS provides regular account statements to subscribers, enabling them to monitor their pension savings and investment performance effectively.
 

Image credits: Freepik
Find Next One