National Pension System
Pension plans provide financial security and stability during old age when people don’t have a regular source of income. Pension scheme gives an opportunity to invest and accumulate savings and get lump sum amount as regular income through annuity plans on retirement.
Government of India (GoI) has established Pension Fund Regulatory and Development Authority of India (PFRDA) to develop and regulate pension sector in the country. National Pension System (NPS) was launched with the objective of providing retirement income to all the citizens. NPS is a contribution based Pension Scheme that provides a reasonable market based returns over a long period. NPS subscribers will be allotted a unique Permanent Retirement Account Number.
SALIENT FEATURE OF NPS:
-NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review by fund managers.
-NPS Subscribers will have an option of choosing Equity, Corporate Bonds or Government Securities with an option to change asset allocation.
-NPS Subscribers can change the Pension Fund Manager.
-Contributions made to NPS are exempted from Income tax, as per Income tax act.
-Minimum contribution is from Rs. 500 onwards.
Originally posted by premchand, transffered to Forum due to T&C