Pros Of Opening An NPS Account For Retirement

Every person, salaried, businessman or non-salaried, thinks and plan a great deal about their old-age and life in that stage. They are worried for their various medical requirements, a steady source of income, and a respectful lifestyle till the time they are alive. Thus, they look for various investment tools for retirement and its various needs. But this decision can be a very confusing one. It’s imperative to invest in the right instrument, otherwise, you might lose out on potential returns of the investment.

To have a smooth and safe retirement and life after that, people start investing early in various investment tools like mutual funds, stocks, real states, EPF, etc. One investment that is specially built for life after retirement is NPS, National Pension System. It is considered as one of the best investment tools for retirement planning in India, focussing on the retirement of investors. This plan is designed to ensure that investors get a pension during their retirement years, along with tax benefits every financial year. This is best for people who are working in the unorganized sector.

Suggested to Read: All You Need To Know About National Pension Scheme in India

NPS is a voluntary contribution scheme with no maximum investment limit. This scheme gives the investors 3 options of investment: equity, corporate debt, and government bonds. As per the experts that when compared to other assets in the retirement category, NPS stands out with various lucrative features for all investors. Various benefits that one can look for by investing in NPS are:

It is voluntary: It is a scheme where one can invest in it at any given point of time in the financial year. You can also change the amount to set aside and save every year.

It is simple: There are simple ways of opening an NPS account. That can be easily done online or by contacting any one of the POPs.

It is flexible: Investors can choose their own investment plans and pension fund and can witness their money grow.

It is portable: The investors have the option of opening an NPS account anywhere in India and can even change the city or employment.

It is regulated: NPS is a safe investment regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust.

Alankit is the best POP SP, Point of Presence Service Provider, and the principal distributive point for NPS. They are responsible for handling and managing the subscriber requests, queries, complaints and providing guidance, support and all other services related to the NPS as a whole. Check their website for more information on opening an NPS account online.

Read More: Steps to Open an NPS Account