NPS Scheme: Become a crorepati after investing in this scheme, get up to Rs 1.6 cr at time of retirement

The National Pension Scheme (NPS) is a government-sponsored pension scheme that allows individuals to save for their retirement and receive a regular pension after they reach the age of 60. It is administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Under the NPS, individuals can choose to invest in a variety of asset classes, including government securities, corporate bonds, and equity funds. The scheme offers two types of accounts: a Tier 1 account, which is a non-withdrawable account, and a Tier 2 account, which is a voluntary savings account that allows for partial withdrawals.

Here's an example of how the NPS works:

Let's say you are 30 years old and you want to retire at 60. You decide to invest a lump sum of Rs 1 lakh in the NPS, and you contribute Rs 5,000 per month for the next 30 years. Assuming an annual return of 10 per cent, your NPS account would grow to around Rs 1 crore 60 lakh by the time you retire.

Benefits of the NPS:

1. Flexibility: The NPS allows you to choose the asset class and fund manager you want to invest in, and you can change your investment allocation at any time.

2. Tax benefits: Contributions to the NPS are eligible for tax deductions under Section 80C of the Income Tax Act, and the interest earned is tax-free.

3. Government contribution: The government also contributes a certain percentage of your contribution to your NPS account, which can be up to 14% for certain categories of subscribers.

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Who can apply for the NPS:

1. Indian citizens between the ages of 18 and 60 are eligible to apply for the NPS.

2. Self-employed individuals, salaried employees, and non-resident Indians (NRIs) can all open an NPS account.

3. Government employees are also eligible for the NPS, but they have a separate pension scheme known as the Central Government Employees Pension Scheme (CGEGIS).

Minimum requirements for opening an NPS account:

1. A valid Permanent Account Number (PAN)

2. A recent passport-sized photograph

3. Proof of identity (such as a voter ID, Aadhaar card, or passport)

4. Proof of address (such as a utility bill, bank statement, or rental agreement)

To open an NPS account, you can visit an NPS Point of Presence (PoP) or an NPS aggregator. You can also open an NPS account online through the eNPS portal, which is available on the PFRDA website.