National Pension Scheme

Secure Retirement with Steady Returns

Introduction

The National Pension Scheme (NPS) is a government-backed investment option aimed at building a secure retirement corpus with tax-efficient returns. It is an ideal choice for individuals looking to ensure financial stability during retirement, offering a structured savings plan with flexibility and attractive returns over the long term.

Product Description

The National Pension Scheme is a voluntary, defined-contribution retirement savings plan that allows individuals to contribute systematically over time. Contributions grow through market-linked returns, providing a substantial retirement corpus with an option for partial withdrawals and an annuity post-retirement. With its regulated framework, NPS ensures transparent and low-cost retirement savings.

Types of National Pension Scheme Accounts

Features of Mutual Funds

Flexible Contribution Options

Allows individuals to contribute as per their convenience and financial goals, offering flexibility in the amount and frequency of investments.

Market-Linked Returns

Invests contributions in a mix of equity, government securities, and corporate bonds, providing a balanced approach to returns and growth.

Partial Withdrawal Facility

Offers the option for partial withdrawals before retirement, subject to certain conditions, making it adaptable for unforeseen expenses.

Tax Benefits

Contributions to Tier I accounts offer tax deductions up to specific limits, enhancing tax savings along with retirement planning.

Annuity Benefits on Retirement

Provides a steady income post-retirement by mandating the purchase of an annuity with a portion of the accumulated corpus.