NPS Know Why National Pension System Important For Retirement Planning Check Benefits

Retirement Planning: National Pension System (NPS) is one such option by investing in which good money can be made for retirement. This scheme offers a range of retirement investment options and makes your retirement planning easier. Under this scheme, you can deposit as much money as you want and can avail pension of up to lakhs of rupees.

An option is also given to save tax by investing under the National Pension System. Recently, SBI has also given a suggestion to the customers to invest in this scheme to save tax. Let us know how NPS can benefit you.

How is the National Pension Scheme beneficial?

Any person between 18 to 70 years can invest under this scheme. On maturity, 60 percent of the amount can be withdrawn from this scheme and the remaining amount can be invested by buying an annuity. Under this, tax exemption can be claimed under Section 80C and 80CCD of the Income Tax Department. Even after withdrawing 60 percent amount from this account, you can take pension every month under this scheme.

minimum investment limit

Two accounts are opened under the National Pension Scheme. At least Rs 500 can be invested under Tier-1, while Rs 1000 can be invested under Tier 2. Talking about tax exemption, income tax exemption can be given only under Tier One. Under section 80CCD (1B) of income tax, a rebate of up to Rs 50 thousand and up to Rs 1.5 lakh can be given under 80C.

Exit option from NPS account

After 60 years, at least 40% of the amount has to be invested in annuity. 60% amount can be withdrawn. This amount can be withdrawn anytime till the age of 75 years. If the total corpus is up to 5 lakhs, then the entire corpus can be withdrawn. On the other hand, if you withdraw the amount before 60 years, then only 20 percent of the amount can be withdrawn from the total corpus. 80 percent of the amount will have to be invested. You can completely withdraw the amount up to 2.5 lakhs.

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