The National Pension System (NPS) is targeted at creating a nest egg for your retirement years. Being a market-linked, defined-contribution product, the corpus purely depends on funds that you choose and their performance. You can begin with a minimum annual contribution of Rs1,000. At 60 years of age, you can buy an annuity—a pension product that gives periodical payouts—with at least 40% of the corpus. The remaining can be taken lump sum. Being a retirement product, NPS discourages early withdrawals by mandating you to annuitize at least 80% of the money. However, partial withdrawals are allowed for certain events. There are four investment funds that it currently offers. And you can choose from two investment strategies—active choice and auto choice. Here are the details.
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