National Pension Scheme
National Pension System (NPS) It's regulated by The Pension Fund Regulatory & Development Authority of India (PFRDA). is a retirement benefit Scheme introduced by the Government of India to facilitate a regular income post retirement to all the subscribers. PFRDA (Pension Fund Regulatory and Development Authority) is the governing body for NPS.
Key Features of NPS
Eligibility:
Age: Individuals between 18 and 70 years can subscribe.
Citizenship: Both resident and non-resident Indians (NRIs) can join.
How to Enroll in NPS
Online: Individuals can enroll through the NPS portal using their Aadhaar or PAN card.
Offline: One can also enroll through a Point of Presence (PoP), which are usually banks and financial institutions authorized by PFRDA.
Account Types
Tier I Account: This is the primary pension account with restrictions on withdrawal. It's primarily meant for retirement savings.
Tier II Account: This is a voluntary savings account that offers greater flexibility for withdrawals. However, it is available only to those with an active Tier I account.
Investment Options
Active Choice: The subscriber selects the allocation percentages for different asset classes (equity, corporate bonds, government bonds, and alternative investments).
Auto Choice: The allocation is based on the subscriber's age. As the age increases, the exposure to equity decreases to reduce risk.
Contributions
Minimum Contributions: For Tier I, a minimum annual contribution of INR 1,000 is required. There is no upper limit on maximum contributions.with No minimum annual contribution requirement for Tier II.
Tax Benefits
Contributions to NPS are eligible for tax deductions under Section 80C (up to INR 1.5 lakh) and an additional INR 50,000 under Section 80CCD(1B).
Withdrawal and Exit:
Withdrawal Rules : After reaching the age of 60, up to 60% of the corpus can be withdrawn tax-free. The remaining 40% must be used to purchase an annuity for a regular pension.
Partial Withdrawals : Subscribers can make partial withdrawals under specific conditions such as higher education, marriage, buying a house, or medical treatment.
Benefits of NPS
- Tax Efficiency: Offers substantial tax benefits making it a tax-efficient retirement savings option
- Flexibility: Provides flexibility in terms of investment choices and fund managers.
- Cost-Effective: NPS is known for its low-cost structure, making it a cost-effective retirement savings option.
- Regulated by PFRDA: The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), ensuring transparency and security of investments.
Our Services
Secure Your Retirement with the National Pension Scheme
At Nexon Financial Services, we understand the importance of planning for a financially secure and comfortable retirement. The National Pension Scheme (NPS) is a government-backed retirement savings initiative that provides an effective way to build a substantial retirement corpus. As a trusted distributor, we help you navigate the NPS and tailor it to your retirement goals, ensuring a worry-free future.
What is the National Pension Scheme (NPS)?
The NPS is a voluntary, defined contribution retirement savings scheme designed to help individuals systematically save for retirement. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and offers a mix of equity, corporate bonds, and government securities, making it a versatile and balanced investment option.
Key Benefits of NPS
- Flexible Investment Options: Choose from a variety of investment options based on your risk appetite and retirement goals.
- Tax Benefits: Enjoy tax deductions under Section 80C and Section 80CCD(1B) of the Income Tax Act, reducing your taxable income.
- Low Cost: NPS is one of the most cost-effective retirement investment options, with low fund management fees.
- Professional Management: Funds are managed by experienced pension fund managers approved by the PFRDA.
- Portability: The NPS account is portable across jobs and locations, ensuring continuity and convenience.
- Regular Pension: Provides a steady stream of income post-retirement, helping you maintain your lifestyle.
Why Choose Nexon Financial Services for NPS?
- Expert Advice: Our NISM Certified Investment Advisors provide personalized guidance to help you make the most of your NPS investments.
- Simplified Process: We assist you with the entire process, from account opening to managing contributions and withdrawals.
- Comprehensive Support: Get ongoing support and updates on your NPS account and investment performance.
- Customer-Centric Approach: We prioritize your retirement goals and ensure a hassle-free experience tailored to your needs.
