National Pension system
Secure Your Retirement with the National Pension System (NPS)
Planning for retirement is crucial for financial security in your later years. The National Pension System (NPS) offers a government-backed, voluntary retirement savings scheme that ensures a steady income post-retirement. At Truvestor, we guide you in understanding and investing in NPS to secure your financial future and provide you with a reliable source of income after you retire.
What is the National Pension System (NPS)?
The National Pension System (NPS) is a pension scheme initiated by the Government of India that allows individuals to invest in a range of asset classes (equity, corporate bonds, government securities, etc.) during their working years. These investments accumulate over time, providing a regular pension in retirement.
- Eligibility: Open to all Indian citizens between the ages of 18 and 65.
- Contributions: Regular contributions can be made to your NPS account, with flexible amounts as per your financial capability.
- Tax Benefits: Contributions to NPS qualify for tax deductions under Section 80C and an additional ₹50,000 under Section 80CCD(1B), making it a tax-efficient way to save for retirement.
Why Choose the National Pension System (NPS)?
Long-Term Retirement Planning
NPS is designed to help you build a substantial corpus over the long term, ensuring a steady post-retirement income. The earlier you start, the larger your retirement savings can grow.Multiple Investment Options
Choose from a range of asset classes such as government bonds, corporate bonds, and equity. This flexibility allows you to diversify your portfolio based on your risk tolerance and financial goals.Low-Cost Management
NPS offers one of the lowest management fees among retirement saving instruments, ensuring more of your money works for you.Tax Benefits
- Up to ₹1.5 Lakh deduction under Section 80C.
- Additional ₹50,000 deduction under Section 80CCD(1B).
- Tax-free corpus on retirement after meeting the applicable conditions.
Pension Option
Upon retirement, you can choose to withdraw a portion of your accumulated corpus as a lump sum and use the remainder to buy an annuity, which will provide you with a regular monthly pension.Portable Across Jobs
NPS is portable and can be continued even when you change jobs, ensuring that your retirement savings stay intact, irrespective of career transitions.
How NPS Works
Account Opening
You can open an NPS account through any registered NPS intermediary or service provider. There are two types of accounts:- Tier-I Account: Primary retirement account with tax benefits.
- Tier-II Account: A voluntary savings account that offers liquidity but without tax benefits.
Regular Contributions
After account activation, you can start contributing to your NPS account either monthly, quarterly, or annually. You can choose the amount and frequency based on your financial ability.Investment Choices
You can select the asset allocation based on your risk preference—equity (higher risk, higher return), corporate bonds (medium risk), or government securities (low risk).Returns and Accumulation
Your contributions are invested in the chosen asset class, and the returns accumulate over time. The NPS has delivered solid returns historically, outperforming many other traditional investment options.Exit and Annuity
Upon reaching the retirement age of 60, you can withdraw a portion of your corpus and use the remaining balance to purchase an annuity plan for a regular monthly pension.
Why Choose Truvestor for NPS?
- Reliable Expertise: With years of experience in financial planning, our team ensures you make the right choices for your retirement.
- Custom-Tailored Advice: We understand that every client’s retirement needs are unique, which is why we provide personalized recommendations.
- Hassle-Free Process: From account setup to monitoring, we make sure your NPS journey is as smooth as possible.
- Transparent Guidance: We ensure you’re fully informed about the benefits, risks, and returns of NPS, so you can make confident investment decisions.
How Truvestor Helps You With NPS
At Truvestor, we assist you in understanding the full potential of NPS and how it can be incorporated into your long-term retirement strategy.
- Expert Advice: We analyze your retirement goals, financial situation, and risk profile to help you decide on the most appropriate NPS investment strategy.
- Seamless Account Setup: Our team makes the process of opening and managing your NPS account simple and hassle-free.
- Tailored Asset Allocation: Based on your risk tolerance and financial objectives, we help you choose the right asset mix between equity, government securities, and corporate bonds.
- Regular Monitoring: We provide periodic updates and insights into your NPS account performance, ensuring that your investments stay aligned with your retirement goals.
- Tax Planning: Maximize your tax savings with the right NPS contributions and strategies for tax-efficient retirement planning.
