How would you afford a good lifestyle when you are old and have retired? Would you have strength to continue earning the second income at that age? Alternatively, would you like to depend on someone to take care of your needs? No, right? So, you must start investing in a good pension plan.

The most advertised pension plans are different varieties of annuity plans offered by insurance providers. You decide when the pension starts and what kind of amount will be paid to you on a monthly basis. There is also an option of getting a certain sum paid regularly for a fixed duration regardless of your living tenure. Apart from this, there are other tax-related and financial benefits associated with different insurance products that you will need to inquire about before investing.

A very reliable choice is the National Pension Scheme (India), popularly known as NPS. If you invest in a Tier-I account of NPS, your investment is exempt under Section 80C. However, the pension that you will withdraw from it will be taxable. You will also be liable for Service Tax and other levies.

NPS lets you track the investment value on a daily basis. To open an account, approach a bank, Post Office or any financial institution authorised by the PFRDA (Pension Fund Regulatory and Development Authority).

Start investing early, start investing now and incur a handsome pension amount while you enjoy your Golden Years.

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Financial assessment in India is generally perceived as something that only the wealthy need. That’s a big mistake, though.

How do you generally travel to your destination? You figure out the route, the means of transport, and carry the required luggage. Likewise, you can reach your financial goals through proper planning.

So, you need financial assessment to tell you what liabilities are in your baggage, which investment vehicle would get you to your goal, and what should be your investment pattern along the route.

For instance, when you are young and have a high risk appetite, it could be recommended that you invest a lot in equities. This is so that even if the markets don’t perform as anticipated, you can sustain for a longer duration, by which time the historic averages of return will come through.

But when you are older, your financial assessment would advise you to go for the National Pension Scheme India, so that there’s a regular pension available to you from a very low-risk investment option.

This is just a general example. Actually, financial assessment in India is as comprehensive as abroad. You get investment options customized just for you based on:

● Your income and expenses

● Your financial goals

● Your risk appetite

And that is not all. You get to select from a variety of financial products offered by multiple public and private enterprises. So, get your financial assessment done today.

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From 1st January 2004, the Government of India launched the National Pension Scheme. Barring the Armed Forces, all new employees of the Central Government had to contribute to it. The objective was to inculcate the habit of saving for retirement.From 1st May 2009, NPS is available to all Indian citizens, including the unorganized sector, on a voluntary basis.

To develop and regulate the pension market, the government set up the Pension Fund Regulatory and Development Authority. The PFRDA has authorised some banks, private financial institutions and the Department of Posts for opening NPS accounts for citizens.

How it works
 
•    Each subscriber is allotted a unique PRAN (Permanent Retirement Account Number), which won’t change, and can be used throughout the country.

•    PRAN gives access to two Accounts:

    Tier-I: You can check the accumulated sum but cannot withdraw from it.

    Tier-II: It is a voluntary savings account. The subscriber can withdraw at will. However, there are no tax benefits in this account.


Tier-I Account benefits

Investments in a Tier-I Account are exempt under Section 80 C, although the withdrawal of pension would be taxable. All charges of a Tier-I Account are paid by the employer.

Service Tax and other levies would be charged as applicable.

NPS benefits

•    Know the value of investment on a daily basis.

•    PRAN stays the same even if you are transferred.

•    PFRDA regularly monitors the performance of the fund managers.

Start your pension savings today.

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Which vehicle are you planning to board for your golden years, deferred annuity or retirement plan? The question takes you to the land of confusion.  The common impression is that Retirement plans are being offered by only life insurance companies. But National Pension Scheme India came to our rescue on May 1, 2009 inviting all citizens of India between the age of 18 and 55 on voluntary basis. Government employees are not the only beneficiary of this scheme but individuals too can enjoy its benefit.

Pension Fund Regulatory and Development Authority (PFRDA) has taken the charge to make it more attractive by reviewing and reforming (if needed) investment guidelines and introducing more schemes and plans for the individuals.

How to invest in National Pension Scheme India?

Investing in the National Pension Scheme is not a tedious task. All it takes is to approach an approved Point of Presence (POP) service provider. The PFRDA has authorized many banks, financial organizations and the Department of Posts to act as POP. A subscriber is required to make his/her contribution with just Rs. 500 (for Tier I) and Rs. 1,000 (for Tier II). The highly transparent and cost effective schemes and simple to operate rules make National Pension Scheme India more alluring for the man on the street.

What are you waiting for? Your route to golden years can be easily initiated by just making a walk in to the nearest POP of National Pension Scheme.

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The National Pension Scheme (NPS) is going great guns. At the beginning of October 2014, the scheme had 7.44 million subscribers. Not to be left behind, the Assets under Management (AUM) of National Pension Scheme has risen to Rs. 63,511 crore. With the increasing AUM, the fund managers of the scheme have also changed their approach to equity exposure. Over the last 6 months, the equity exposure has been close to 14% (the maximum permitted exposure is 15%), up from 8% in March 2014.

The sudden shift

One could think as to why the fund managers of National Pension Scheme India are now betting aggressively on equities, while they were playing safe till 6 months back. The media attributes it to the lack of clarity around Mar’ 14. The elections were approaching and the fund managers were unsure of how the stock market will react to the election results. With a new stable Government in place and the Sensex too responding positively, the fund managers of National Pension Scheme decided that the time was ripe to increase the equity exposure.

Returns are pouring

This calendar year, the National Pension Scheme has even beaten the benchmark Nifty in terms of returns. With the regulator, PFRDA, seeking tax sops for NPS, its attraction is only set to increase over the years ahead.

Are you in?

There is a common misconception that National Pension Scheme is only for the Government employees. However, the fact is that from May 1, 2009, this pension scheme was thrown open to all citizens of India, between the age of 18 and 60. In case, you wish to invest in NPS, all it takes is to approach an approved Point of Presence (POP) service provider. The PFRDA has authorized many banks, financial organisations and the Department of Posts to act as POP for National Pension Scheme.

Start your retirement planning at the earliest and what better than National Pension Scheme India to start with.

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Thinking of a deferred annuity or retirement plan to meet your retirement expenses? Many are under the impression that pension plans are only sold by life insurers. Even though most of us would have heard of National Pension Scheme India, it is commonly thought that this scheme is only for the Government employees, which is far from the truth.

From May 1, 2009, National Pension Scheme India was thrown open to all citizens of India, between the age of 18 and 60. But has it attracted interest among the common man?

It seems the Pension Fund Regulatory and Development Authority (PFRDA) has also taken note of this development. Recently, they set up an expert committee under the former SEBI chief, G.N. Bajpai, to review investment guidelines for the National Pension Scheme India, other than for Government employees. This has been done to make the National Pension Scheme India more attractive. This panel, expected to submit its report in 6 weeks, might recommend changes or even new schemes. So, expect better schemes and returns to come out of the kitty of National Pension Scheme India.

With AUM of more than Rs. 58,000 crore, National Pension Scheme India, with more schemes and plans, would be an ideal place to start your retirement planning with.

How to invest in National Pension Scheme India?

Investing in National Pension Scheme India is not a tedious task. All it takes is to approach an approved Point of Presence (POP) service provider. The PFRDA has authorized many banks, financial organisations and the Department of Posts to act as POP for National Pension Scheme India. The highly transparent schemes and simple to operate rules make National Pension Scheme India more alluring for the man on the street.

It’s never too late to start retirement planning. Walk in to the nearest POP of National Pension Scheme India and get ready for your autumn years.

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