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Features of National Pension System- UTI RSL

The National Pension System (NPS) is a government-sponsored pension scheme launched in 2004 to provide a simple, cost- effective, and ufb02exible pension solution for Indian citizens. To Know more about visit https://www.utirsl.com/

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Features of National Pension System- UTI RSL

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  1. Featuresof National Pension System (NPS)

  2. Introduction The National Pension System (NPS) is a government-sponsored pension scheme launched in 2004 to provide a simple, cost- effective, and flexible pension solution for Indian citizens. NPS aims to promote old-age income security by encouraging voluntary savings and providing a sustainable retirement income to subscribers.

  3. NPS Accessibility Subscribers can open an NPS account online or through physical application forms, with the option to choose a Pension Fund Manager and investment scheme. NPS is open to Indian citizens between the ages of 18 and 70 years, with the option to continue contributions until the age of 75.Minimum Contributions: Subscribers are required to make a minimum contribution of Rs. 500 per year to maintain their NPS account. Upon exit, subscribers can use the accumulated corpus to purchase an annuity from any PFRDA- empaneled life insurance company, which will provide them with a regular income stream for life.

  4. Types of NPS Accounts Tier Iand Tier II. This is the primary pension account that offers tax benefits under sections 80C and 80CCD. Withdrawals from this account are restricted and subject to certain conditions. This is an optional account that does not offer any tax benefits. It serves as a voluntary savings account that allows subscribers to withdraw funds as per their needs.

  5. Benefits of NPS Contributions to NPS are eligible for tax deductions under sections 80C and 80CCD, making it a tax-efficient retirement planning tool. NPS provides a systematic approach to saving for retirement, ensuring financial security in the golden years. Employers can contribute to their employees' NPS accounts, which can be claimed as a business expense, reducing their taxable income.

  6. Features of NPS NPS accounts are portable, allowing subscribers to continue their contributions even if they change jobs or move to different cities. NPS is a cost-effective investment option, with minimal charges and transparent fee structures. NPS has the potential to generate competitive returns through its diverse investment options and professional fund management. Contributions to NPS are tax- deductible, and withdrawals are tax-exempt, making it a tax-efficient retirement planning tool. NPS operates under a clear and regulated investment framework, ensuring transparency and accountability in fund management.

  7. Regular Framework The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator that oversees the functioning of NPS. NPS contributions are managed by professional Pension Fund Managers, who invest the funds in various asset classes based on the subscriber's risk profile and investment preferences. Stock Holding Corporation of India Ltd. acts as the custodian for NPS funds, ensuring the safety and security of subscriber contributions. Each NPS subscriber is issued a unique Permanent Retirement Account Number (PRAN), which serves as a unique identifier for their account.

  8. InvestmentStrategies NPS contributions are by Pension professionally Managers, who invest the funds in various asset classes based on the subscriber's risk profile and investment preferences. managed Fund NPS including bonds, subscribers their offers a government and to choose a appetite range of investment securities, instruments, portfolio investment goals. options, corporate allowing that suits equity and risk NPS accounts generate returns based on the Net Asset Value (NAV) of the underlying investments, which fluctuates based on market conditions.

  9. Withdrawal and Exit Options Subscribers can exit NPS at the age of 60 or upon superannuation, with the option to withdraw up to 60% of the accumulated corpus as a lump sum and the remaining amount used to purchase an annuity. Subscribers can exit NPS before the age of 60 under certain conditions, such as permanent disability or terminal illness, with the option to withdraw up to 25% of the accumulated corpus as a lump sum and the remaining amount used to purchase an annuity. Subscribers can make partial withdrawals from their NPS accounts for specific purposes, such as higher education or marriage of children, subject to certain conditions and limits.

  10. NPS Accessibility Subscribers can open an NPS account online or through physical application forms, with the option to choose a Pension Fund Manager and investment scheme. NPS is open to Indian citizens between the ages of 18 and 70 years, with the option to continue contributions until the age of 75.Minimum Contributions: Subscribers are required to make a minimum contribution of Rs. 500 per year to maintain their NPS account. Upon exit, subscribers can use the accumulated corpus to purchase an annuity from any PFRDA- empaneled life insurance company, which will provide them with a regular income stream for life.

  11. ThankYou! Do you have any questions? contact@utirsl.co.in https://www.utirsl.com/

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