national pension scheme

National Pension Scheme

What is National Pension Scheme?

National Pension Scheme, also known as NPS, is a scheme that provides you financial security in the later years of your life. When you retire from your job or business and are not able enough to earn a living, the National Pension Scheme would come to your aid. You will receive some money on a regular basis. And it would definitely make your life easy. To know about the National Pension Scheme, go through this post.

Who can invest in National Pension Scheme 2017?

All the Indian citizens and the state or central government employees can invest in the scheme. But, they have to be under the age group of 18-60 years. Also, if you have an already existing pension account, you need to register for a new one. The scheme does not allow mapping of old pension accounts to new ones.

national pension scheme

What are the Documents Required to Enroll for National Pension Scheme?

One should have below documents in order to apply for National Pension Scheme.

1.       Address Proof.

You can give any address proof such as your passport, bank passbook. Aadhar card, ration card or even PAN card.

2.       Identity Proof

Again, you can give any identity proof including electricity bill, Aadhar card, passport etc.

Conditions of Making the Contributions

There are two types of accounts under the National Pension Scheme. The Tier-I accounts and the Tier-II accounts. Both the kinds of account holders can make the payments either through cheque or cash.

The Tier-I account holders need to contribute Rs. 6000 annually. And at a time, they have to contribute at least Rs. 500.

On the other hand, the Tier-II account holders would need to contribute Rs. 2000 on an annual basis. Further, they should contribute at least Rs. 250 at a time.

Why should you invest in National Pension Scheme?

The big question – are there any benefits of investing in the National Pension Scheme? Well, there are many benefits. Here, we are listing a few.

1.       The scheme does not have fixed investment options. You can choose your options as per your requirements. It is definitely a flexible scheme.

2.       You get Income tax benefits when you invest under the National Pension Scheme. This is mandate by the 80C section of the Indian Income Tax Act. So, if you are looking up to saving taxes, it would be a good idea to go for it.

3.       The investment norms are completely transparent and nothing is hidden from you at any stage.

4.       The National Pension Scheme also allows you to switch investment funds. This benefit is mostly not provided by any other investment scheme.

5.       Once you invest in this Yojana, you can have a happy retirement. You can plan it instead of worrying about your income sources later on.

6.       You can operate your account from anywhere in the country. So if you are out of town at a particular point of time, there is nothing to worry, thanks to net banking.

The National Pension Scheme would also inculcate a habit of savings among the citizens. And hence, if you are eligible for it, you should definitely invest in it. Let us know your opinion in the comments section below.

Aashish Srivastava

Aashish Srivastava is passionate about writing and is the editor-in-chief of various websites. A nerd and sentimental pulse, he enjoys music and travelling. A big fan of Sachin Tendulkar . He is a great listener who loves observing people.