You Should Know about National Pension Scheme
National Pension Scheme, National Pension Plan, NPS, Details of National Pension Scheme, Benefits of National Pension Scheme, Central Government Schemes, State Government Schemes, List of All Government Schemes, Government Schemes
The Central Government of India led by NDA Leader and the Hon’ble Prime Minister of India Shri Narender Modi has launched a low-cost, tax-efficient and flexible retirement savings scheme i.e. National Pension System (NPS).
The National Pension Scheme is one of the saving schemes where anyone can invest money monthly or through a systematic saving plan during your working life to get an adequate retirement income. Under this scheme, all Indian citizens of 18 to 60 years of age, including NRIs are eligible to apply for a pension fund account.
What is the National Pension Scheme
National Pension Plan is the cheapest market-related retirement plan between all other retirement plans (EPF, PPF and mutual funds), it suggests that this maximum number of sales will be recorded. But due to very little pays incentives/commissionission for middlemen, they are not getting promotions.
When the plan started, the scenario was poor, the cost of fund management was limited to 0.0009 percent and the attendance points or POP where investor accounts were opened, they were not allowed to charge more than Rs 20 per account, no matter how big Why not invest only. In addition to an annual CRA of 225 rupees, there was also a fee for opening a 50 rupee account for the CRA.
The fund management fee for non-government funds has now increased to 0.25 percent and for the government, funds it has increased by 0.0102 percent. Also, POPs are allowed to charge more than 100% of the investment of 0.25%. This change will definitely act as an incentive for the agents who will now actively present the product in the market.
Eligibility Criteria for NPS
A citizen of India, whether resident or non-resident, who complies with the following conditions.
Any individuals aged between 18 to 60 years as on the date of submission of his/her application to the Points of Presence (POP)/POP-Service Providers (SP).
All citizens can join NPS either as individuals or under the employee-employer group(s) post the submission of all required information and KYC documentation.
Types of National Pension Plans (NPS)
There are two types of NPS accounts
It has a basic pension account with borders on the return
Only 20% of the contribution can be withdrawn before the age of 60 years can be withdrawn, whereas the remaining 80% is required to be used by the life insurance company to buy the annuity. Annuity is a series of payments made at fixed intervals of time. Annuity plans require insurers to pay insured income at regular intervals till their death or till maturity of the plan.
Even after retirement (60 years), 60% contribution can be taken close and remaining 40% can be used to purchase annuity from approved life insurance companies.
Tier II Account
This is a voluntary saving option, so that a person can withdraw money unlimited.
Read More: National Pension Scheme, National Pension Plan, NPS, Details of National Pension Scheme, Benefits of National Pension Scheme, Central Government Schemes, State Government Schemes, List of All Government Schemes, Government Schemes
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