NPS is a voluntary, defined contribution pension system that allows you to invest regularly in a pension account throughout your working life. At retirement, a portion of the accumulated corpus can be withdrawn as a lump sum, while the remaining amount is used to purchase an annuity, ensuring a steady income stream. It offers flexibility in choosing investment options and fund managers, allowing you to maximize your retirement savings.
Types of NPS Accounts:
- Tier I Account: Mandatory retirement account with tax benefits.
- Tier II Account: Voluntary savings account with flexible withdrawals.
Features:
- Flexibility in Investment: Choice of investment options and fund managers.
- Tax Benefits: Deductions on contributions under applicable sections.
- Low-Cost Structure: Cost-effective management fees for maximizing returns.
- Partial Withdrawals: Permitted under specified conditions for emergencies.
- Annuity Options: Ensures regular income post-retirement.
- Portability: Account portability across locations and employment changes.
The National Pension System is a smart choice for building a financially secure retirement. It provides the perfect blend of flexibility, tax benefits, and long-term growth, ensuring peace of mind during your golden years. At SIPUS INDIA FINANCIAL PRIVATE LIMITED, we help you understand and invest in NPS, guiding you towards a worry-free retirement.
