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National Pension Scheme (NPS): Features, Benefits & Drawbacks

Tuesday, February 26th, 2019 Amritesh 11 responses

National Pension Scheme (NPS) is a retirement benefit scheme introduced for the Individuals to provide regular income post retirement. The scheme was initially rolled out for the Government Employees, but in 2009 the scheme was opened for all the citizens of India. Currently, Individuals between the age of 18-65 years is eligible to subscribe to National Pension Scheme (NPS). The age limit for the subscription to the scheme was increased to 65 years from 60 years. Recently, Government allowed tax exemption on the NPS Withdrawal corpus (60% of total accumulation). Like every financial product, National Pension Scheme (NPS) has its own sets of features, advantages and disadvantages. The National Pension Scheme (NPS) is hailed as one of the economical retirement…

National Pension Scheme (NPS) : All Citizen Model

Tuesday, February 12th, 2019 Amritesh 3 responses

National Pension Scheme (NPS) was introduced by the Government of India in 2004. NPS is aimed at the providing financial security to the Subscribers post retirement. Initially, NPS was available only for the Government Employees. However, in 2009 the scheme was made available for common citizens as well. The scheme is strategically designed to strike balance between return and risk, in order to ensure optimum return while safeguarding the investment against market volatility. National Pension Scheme (NPS) has been discussed in my previous articles as well; the links has been shared below. NPS Government Model NPS: Retirement Benefit Plan National Pension Scheme (NPS) All Citizen Model was introduced in 2009. It is a low cost, tax efficient retirement plan wherein…

National Pension Scheme (NPS): Government Model

Tuesday, January 15th, 2019 Amritesh 2 responses

National Pension Scheme (NPS) was introduced for the Central Government Employees (except armed forces) and State Government Employees (as per the date notified by the State Government) joining service on or after 1st January 2004. National Pension Scheme (NPS) comprises of two Funds, Tier-1 & Tier-2, wherein contribution to Tier-1 is mandatory for all Government Employees, whereas contribution to Tier-2 fund is optional for the Subscribers. National Pension Scheme (NPS) has replaced the Government Provident Fund (GPF). NPS is expected to provide better return in the long run as the investment is diversified into various asset class. NPS: Retirement Benefit Plan National Pension Scheme (NPS): All Citizen Model Respective Employee as well as the Government contributes to the Fund, investment/deposits…

National Pension Scheme (NPS): Retirement Benefit Plan

Tuesday, September 12th, 2017 Amritesh 3 responses

About National Pension Scheme (NPS): An Insight National Pension Scheme (NPS) is introduced by the Government to provide better Social Security to the Individuals post retirement and help them lead comfortable life. The National Pension Scheme (NPS) was launched on 1st January,2004 and was made mandatory for all Central Government Employees. Since 2009 the Scheme has been opened for all the citizens between 18 years to 65 years of age. The NPS is managed by Professional Fund Managers. Now even various State Governments and Corporate entities have also subscribed to the scheme for the benefit of their employees. Pension Fund Regulatory and Development Authority (PFRDA) formed in 2003 by the Government of India to manage and regulate the Funds under…

Employees’ Pension Scheme (EPS): Should You Opt for Deferred Withdrawal?

Wednesday, August 30th, 2017 Amritesh 6 responses

Recently, Government made amendments to the Employees Pension Scheme (EPS) norms allowing Subscribers to defer withdrawal of pension (After 58 years) for minimum of 1 year and maximum of 2 years along with additional interest of up to 8.16% on actual pension. The amendments offer two options to the Subscriber with regard to deferred withdrawal of pension fund. First, the Subscriber may continue to contribute to the Pension Fund for the extended period and the same will be considered while calculating Pensionable Salary and Pensionable Service. Second, the Subscriber decides to defer the withdrawal for 2 years but opts not to contribute during the deferment period. Higher Pension Under EPS For Members Employees' Pension Scheme (Series-1) Benefits Under Employees' Pension…

Employees’ Pension Scheme (EPS): Increase Your Pension with Deferred Withdrawal

Monday, August 28th, 2017 Amritesh 7 responses

Government recently made few amendments to the Employees’ Pension Scheme (EPS). These amendments are aimed at reducing the deficit in Pension Fund and provide Subscribers with an option to receive higher pension. The new changes allow Subscribers to defer withdrawal of pension for 1 year or 2 years after reaching the age of 58 but not beyond 60 years. Member will enjoy an additional increase of 4% in case of deferral for 1 year and 8.16% in case of deferral for 2 years. Members will also have the option to contribute to the Pension Fund till the age of 60 which would be included while calculating pensionable service and contribution period. Members who do not wish to contribute during the…

EPS vs NPS vs APY: Retirement Benefit Comparison

Tuesday, July 18th, 2017 Amritesh no responses

Retirement Planning is not just about saving for the future rather it involves systematic approach towards accumulation of corpus which would be sufficient to meet the financial obligations post retirement. Individuals may avail various retirement plans provided by the Insurance Companies or invest in Mutual Funds or Public Provident Fund (PPF) which provides lump sum or regular income post retirement. However, many are often confused or not aware of the probable retirement benefit plans which they can avail. Government is also very serious regarding the same as it wants individuals to plan for the retirement while they are young and earning. It has launched various schemes and created awareness about it so that more and more individuals avail those schemes…

Atal Pension Yojana (APY): Online Account Statement For The Subscribers

Tuesday, June 13th, 2017 Amritesh 5 responses

Subscribers to the Atal Pension Yojana (APY) may now download the statement of their contribution to the scheme online by providing the relevant account related information. APY does provide hard copies of the statement but many of the subscribers are not in receipt of the same. However, for Income Tax declaration and various other purpose the statement is often required. Contribution to Atal Pension Yojana (APY) is eligible for Tax Deduction U/S 80 CCD (1b) thereby making it a decent retirement plan for the individuals. Individuals aged between 18-40 years are eligible to subscribe to the scheme. The minimum monthly contribution which may be made to the scheme is Rs 42/- while maximum monthly contribution is capped at Rs 1,454/-…

FATCA Compliance for National Pension Scheme (NPS)

Saturday, June 3rd, 2017 Amritesh one response

Subscribers to the National Pension Scheme (NPS) are now required to complete the FATCA Compliance online. The option is available to the Subscribers to complete the compliance by logging onto the portal and submitting the required information. It is mandatory for the Subscribers who have subscribed to the scheme on or after 1st July, 2014 to be FATCA compliant. National Pension Scheme (NPS) is the retirement benefit plan for the Individuals aimed at providing better standard of living during the old age. The online certification is also mandatory for the Subscribers who have already sent physical documents to CRA for the same purpose. Earlier, Central Recordkeeping Agency (CRA) had announced Subscribers need to send the hard copies of the documents…

Annuity Retirement Plans: Types and Benefits

Sunday, May 14th, 2017 Amritesh no responses

Life is short but our career is even shorter. Hence, when planning for future it is always advisable to plan for your retirement as well. The earlier you start the better it is to plan your investment. Annuity is a Financial Product offered by Insurance Companies, aimed at providing steady source of income to the Annuitants (Purchaser of Annuity Plans). The primary aim of such plan is to provide financial cover on retirement to the individuals, and ensure that one is able to sustain him/herself. It is one of the retirement benefit plan which may be considered by Individuals who are looking at steady income plans post their retirement. There are primarily two types of Annuity Plans currently offered in…

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