Pension after Private Job?

 We have always thought about the retirement age and expected to have a peaceful life after retirement. But how is that possible? If you are working in a private firm then how will you receive a PENSION? Is there any way that the Government of India will be paying us PENSION? Yes, there is a way. We call it National Pension Scheme.

Today we are discussing how any employee from a private organization will receive the PENSION. In this blog, we will discuss the NPS, its Features, and benefits, NPS Eligibility, and Interest Rates of the National Pension Scheme.

 

What is NPS?

National Pension Scheme is an initiative by the Central Government of India for the public, private sector, and unorganized sector employees except those from the armed forces. These schemes encourage the employees to invest in pension accounts at certain time intervals during the period of employment. 

After retirement, the investors can withdraw a certain amount of percentage from the corpus amount and the remaining amount will be received in the form of a pension. The investor has to invest till the retirement. The investor gets tax benefits under Section 80C and Section 80CDD up to Rs. 1.5 Lakhs.

Who can invest in NPS?

NPS is a very good option for anyone who is planning for retirement and has a lower amount to deposit every year as per the capabilities of the investor. This scheme is very helpful for people who are working in the private sector as this scheme is providing some kind of security for the future for them. NPS is volunteered under the responsibility of the PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY(PFRDA).

What are the Benefits of NPS?

The maximum portion of the NPS is invested in equities that help to generate maximum returns. Still, this scheme provides better returns than other tax-saving schemes like PPF and Fixed Deposits. These schemes like Fixed Deposits and PPF give returns of 7% and 7.1% while NPS is giving returns of up to 12%. Isn't this awesome? 

Comment your thoughts below on returns. 

What is the eligibility of NPS?

• The investor must have to be the Indian Citizen or the Overseas Citizen of India. 
• The age must have to be between 18-70. 
• Customer should have completed the KYC norms as per the regulations. 
• Should be legally competent to execute as per the Indian contract
• NPS is an individual pension account, it cannot be on behalf of a third person.

How to apply for NPS?

You can apply in two ways i.e. Online or Offline. 

For online process you can open account online by their website if you link your PAN, Aadhar and Account Number. The application will be completed within a day.

For offline process you have to find Point of Presence registered with PFRDA and collect subscriber from your nearest bank and submit the KYC papers. Once the initial is made that is minimum amount of Rs. 1000/- yearly, the Point of Presence will send you PRAN - Permanent Retirement Account Number.

If you want to Contact NPS the customer care number is 1800 110 708.

If you are reading this blog for the first time then let me introduce myself, My name is Akash Founder of Finance Talks with Sky. I share information about personal finance, the stock market, and a lot more. To know more about finance and stock markets do follow Finance Talks with Sky.

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