Outlook Money
NPS is a scheme that caters to the various financial needs and segments of the society. It helps from being a corporate or government employee and self-employed to a resident or a non-resident Indian.
The feature that makes this scheme different is the opportunity that it provides to its subscribers to save for retirement and generate inflation-beating returns and create wealth.
Studies indicate that by 2050, one in five Indian citizens will be over 60 years old, owing to rising life expectancy driven by medical advancements. This implies that individuals will need to be financially prepared for an additional 20-30 years beyond their official retirement. Therefore, it is essential to factor this into retirement planning to avoid depleting savings during a lifetime.
Compounding interest is a powerful tool to grow investments in the market over the long term. It can enable one to create a significant corpus with the help of the compounding growth of their investments.
Since NPS is a low-cost pension scheme, it offers flexible deposit and withdrawal features. Its new Balanced Life Cycle Fund for private-sector employees and NPS Vatsalya for minors offer more opportunities, catering to the needs of various sections of society,
NPS offers flexible online registration and deposit norms. Accounts remain active even if the minimum annual deposit isn't met. Investors, here can choose asset classes up to four times a year and change fund managers once annually, allowing customization based on risk appetite.
Compiled by Syed Muskan