NPS

What makes NPS the Right Option for Retirement? Feb 17, 2022 Alankit Not every individual plans his or her retirement days. However, those who plan must consider different ways to maintain their life post-retirement. Whether the twilight years of one’s life will be happy or difficult, it all depends upon the plans one makes and implement during early years. So, to reduce the pitfalls of having no corpus at post-retirement life, the Government of India introduced National Pension Scheme (NPS) for the citizens of India in 2004. NPS has been gaining much popularity among the investors and has been providing multiple benefits dedicated to the senior people in the society to keep them financially protected during their golden days. NPS is a government-owned social security investment scheme designed for the employees of private, public, or unorganised sectors. Under this scheme, the investor can invest a portion of their income i.e., minimum Rs 500 to no maximum limit. Once, the retirement approaches one can make withdrawal of a proportion of their contribution from the scheme, but the rest of the investment will be shared as regular monthly pension. Benefits of Investing in NPS NPS provides a systematic saving opportunity for those who are looking forward to securing their retirement days. But above all, this scheme comes with multiple benefits that make it the right option for investment when looking for building up a retirement corpus. Here are the reasons why one should consider NPS as the right option for retirement. Source of Income (Post Retirement) Low-Risk Investment Flexibility of Fund Allocation Guaranteed Returns Affordable Investment Saves on Taxes NPS Accounts Under NPS individuals can register in the following accounts: Tier-I: Primary account geared towards retirement Tier-II: It is more like a savings account and one can open a Tier-II account only if one has an active Tier-I account Registration for the scheme can be done in the following steps: 1. Choose your subscriber type from the available options Individual Subscriber Corporate Subscriber 2. Choose your suitable residential status: Citizen of India NRI 3. Opt for either Tier-I account or both accounts as a choice of the former is mandatory for long-term savings. 4. Enter the PAN Details and select a suitable bank for KYC verification. 5. Upload a scanned copy of your PAN Card along with cancelled cheque. 6. Upload a scanned copy of your photograph and signature. 7. Once redirected to the payment gateway, proceed to pay the required charges via net banking. 8. Your Permanent Retirement Account Number (PRAN) will be generated. We at Alankit will guide you through every step to have a seamless account opening process and also provide you with the facility of opening your NPS account offline. While opting for an NPS account offline, one is required to fill a form provided along with the KYC documents and will have to make the initial payment to their NPS account, resulting in the generation of their PRAN. At Alankit, we welcome every investor of NPS and guide them through every step of opening their account making it a completely easy and hassle-free process. If you are looking forward to investing in your future opt for NPS now!

What makes NPS the Right Option for Retirement?

Feb 17, 2022 Alankit

Not every individual plans his or her retirement days. However, those who plan must consider different ways to maintain their life post-retirement. Whether the twilight years of one’s life will be happy or difficult, it all depends upon the plans one makes and implement during early years.

So, to reduce the pitfalls of having no corpus at post-retirement life, the Government of India introduced National Pension Scheme (NPS) for the citizens of India in 2004. NPS has been gaining much popularity among the investors and has been providing multiple benefits dedicated to the senior people in the society to keep them financially protected during their golden days.

NPS is a government-owned social security investment scheme designed for the employees of private, public, or unorganised sectors. Under this scheme, the investor can invest a portion of their income i.e., minimum Rs 500 to no maximum limit. Once, the retirement approaches one can make withdrawal of a proportion of their contribution from the scheme, but the rest of the investment will be shared as regular monthly pension.

Benefits of Investing in NPS

NPS provides a systematic saving opportunity for those who are looking forward to securing their retirement days. But above all, this scheme comes with multiple benefits that make it the right option for investment when looking for building up a retirement corpus.

Here are the reasons why one should consider NPS as the right option for retirement.

Source of Income (Post Retirement)
Low-Risk Investment
Flexibility of Fund Allocation
Guaranteed Returns
Affordable Investment
Saves on Taxes

NPS Accounts

Under NPS individuals can register in the following accounts:

Tier-I: Primary account geared towards retirement
Tier-II: It is more like a savings account and one can open a Tier-II account only if one has an active Tier-I account

Registration for the scheme can be done in the following steps:

1. Choose your subscriber type from the available options

Individual Subscriber
Corporate Subscriber

2. Choose your suitable residential status:

Citizen of India
NRI

3. Opt for either Tier-I account or both accounts as a choice of the former is mandatory for long-term savings.

4. Enter the PAN Details and select a suitable bank for KYC verification.

5. Upload a scanned copy of your PAN Card along with cancelled cheque.

6. Upload a scanned copy of your photograph and signature.

7. Once redirected to the payment gateway, proceed to pay the required charges via net banking.

8. Your Permanent Retirement Account Number (PRAN) will be generated.

We at Alankit will guide you through every step to have a seamless account opening process and also provide you with the facility of opening your NPS account offline.

While opting for an NPS account offline, one is required to fill a form provided along with the KYC documents and will have to make the initial payment to their NPS account, resulting in the generation of their PRAN.

At Alankit, we welcome every investor of NPS and guide them through every step of opening their account making it a completely easy and hassle-free process. If you are looking forward to investing in your future opt for NPS now!