NPS Scheme: National Pension System (NPS) helps in creating a steady income source for every individual after retirement. As retirement worries many people, they look forward to securing their finances for their future. However, savings finance may not be sufficient to meet your desired investment goal. So you must invest in the best financial plans that will help you grow your wealth. Plus, it will reap the desired rewards as you get older over time. According to tax and investment experts, NPS provided income tax benefits as well as an affordable investment model among other annuity plans available in the market. Moreover, NPS is a Government of India supported scheme which also ensures social security after retirement.
On why one should choose NPS as compared to other annuity plans available in the market, Shrikant Nadella, MD & CEO, Kfintech said, “NPS scheme is a highly affordable investment option sponsored by the Government of India. Provides flexibility. In fact, National Pension Scheme is better than any other synthetic investment plan. Still, a flexible investment plan is always beneficial for a better investment plan. Future post retirement. Also, NPS has the potential to be exempt from your tax, thereby helping you make huge savings.
How NPS gives you an opportunity to buy better annuity plans available in Indian marketPankaj Mathpal, MD & CEO, Optima Money Managers, said, “Through NPS, an investor is offered annuity plans from insurance companies that are listed by it. pension fund Regulatory and Development Authority (PFRDA), which is an added advantage of NPS scheme at the time of purchase of annuity.”
Why should an investor invest in NPS scheme to create wealth for retirement fund, SEBI registered and Investment Expert Jitendra Solanki said, “In NPS, an investor is given the option to choose the percentage of the assets to be used for buying annuity. However, one has to use a minimum of 40 per cent of the maturity amount to buy annuity and the rest Investor in the form of a lump sum maturity amount. It is a unique investment instrument that offers a mix of both equity and debt risk in a single investment.”
Jitendra Solanki further said that the NPS maturity amount is fully taxable as one need not pay any income tax on the maturity amount withdrawn and the maturity amount used for annuity purchase.
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