Absolutely. NPS provides various investment choices ranging from equity to fixed income instruments. Diversifying your NPS portfolio based on risk tolerance and investment goals is key.

I've been considering NPS as part of my retirement planning. How does investing in NPS compare to other retirement savings vehicles like the 401(k) or IRA?

You should contribute to your retirement diligently, or better still look into financial planning don't come to youtube for advise, consult a Local or trusted online broker/ planner

Investing in NPS offers unique advantages like tax benefits and the option to choose between different fund managers and investment options. It's essential to weigh these factors against other retirement savings avenues.

This is huge! would love to grow my reserve regardless of the economy situation, my 407k has lost everything accrued since early 2019, at this point, i'm in need of guidance, can you point me?

The thought here is NPS is a great investment if you are thinking of your income post 58 years of age. You need a monthly source and hence the 40% forces you to hold and reap rewards in a continuous fashion no?

That was the point which was initially stopping me from investing..Then someone pointed out if you are anyway giving away 30+% as income taxes, you would be getting back a good amount back in the form of annuity

Wt " shenanigans"?

@@viperking88 yes but what matters is if you invest in NPS - it’s government backed. So you sure shot get atleast 12% returns annually. What pension fund globally gives you that? It’s about managing your risk profile. If you invest 10k every month, would you invest all in high risk, high reward. You would also invest in sure shot, safe bets.

Actually this forced annuity restrict some one to withdraw entire money,which in long term may be beneficial for him/her, by the way after his/her death nominee will get back entire sum.

@@taruns7 NPS is run by government. It was an offshoot from the OPS direct benefit mechanism to now a Direct contribution method. And you can look at NPS trust data on their website on how they manage the funds. It’s pretty transparent.

People are not so smart....when the time will come when 1st batch of nps beneficiaries will start take pension from annuity then people will become smart

​@@MsRahulghoshwell said

The problem is, we government servants are forced to NPS. 😢

Tax free nature of 60% corpus and the lower cost will balance that out.

Yes

I'm a newbie in investment, can you guide me on how did it?

What assets did you invest in and how did you achieve so much within a such period of time?

Starting early is simply the best way of getting ahead to build wealth investing remains a priority I learnt from my last year's experience I am able to build a suitable life..

Please can you leave the info of your Investment advsor here? I'm in dire need for one

she's mostly on Telegrams, using the user name

@@manukuriachen5750 every product serves a purpose. NPS is for long term planning as with medicine evolving average age in India is >72 and in all likelihood we could see 85-90 yrs age as more common. Hence NPS helps with regular income source. For medical emergencies, you can park your funds in a different liquid instrument like FDs or get a Health insurance itself.

This must change

Check the NPS app or website, they have recently introduced the scheme change option for government employees also.

@@nagarajbhat6606 well said.

Because in the event that you are listening to another fund manager talking against NPS, you will know with certainty that he isnt lying to prove a point against NPS. So you can then make an informed choice.

you can opt for tier2 which is similar to MF and you can exit any time. Tier II is an add-on account which provides you the flexibility to invest and withdraw from various schemes available in NPS without any exit load

You already saved 30% at time of investment; hence you invested 1lac instead of 70k. At maturity you have 40% blocked for pension in return of that; you can think that 30% which you saved instead of being paid as taxes to gov is blocked in future. Hence it is mix bag. In case you are in 30% bracket it NPS make sense; and money is blocked till retirement (being a retirement product like ppf) it makes a corpus. Yes we can argue that MF makes 25% return; in comparison to NPS which is generarting 13% return for agressive choice

@@ranitdey6355 Pension will be a huge problem post 2030 when a large chunk of India retires. As people cross 60 and more and more people will see Annuity via NPS as a god send. How in the west today with an older population the earlier elections ran on Healthcare and now it’s all about 401k plans. This will be the theme for India as well.

This is true for all investment options.. we never know when government will start taxing mutual fund or equity as per slab.. we are reaching there slowly though..

Correct.... I also use nps t2 as debt investment tool to get better than debt return.

Because votebank of your kind doesn't count

What was your corpus at the time of retirement? I guess your NPS term wasn't 30 years? Say your corpus was 2CR u recieved lumsum of 60% which is around 1.2 CR and annuity of 80L even if you get 5% return pm from 80L you are getting 40K PM as pension. And don't forget about the lumsump of 1.2 cr which you can invest in something which gives you monthly income.

​@@kiripotimung3730 I have a question......why on earth I will book a 5% interest after investing in equity market for last 20/25 long years? Same period of time with same amount of SIP when brings a fat corpus, why I will not choose a SWP with any of a balanced fund? It would generate huge money.

I agree 5% is way minimal rate compared to inflation rate of 7%. But can’t we look that annuity amount reducing the 30% tax saved every year appx of 10% basic + 50k in CCD2 ?

It is not a scam while applying itself you knew that 40% will go to the annuity

@@handlerxy had to take it in army. No choice buddy.

@@pankajmahatta2862 yes you can. However your minimum limit is different.

Hello, yes, as an Overseas Citizen of India (OCI) with tax residency in India, you are eligible to subscribe to the NPS. The eligibility criteria for NPS include: Age: You must be between 18 to 70 years of age. Residency: As an OCI with tax residency in India, you fulfil the residency requirement for NPS. Investment limits: NRIs/OCIs need to meet the minimum contribution of Rs. 500 required thereafter, a minimum investment of Rs 6000 would be needed every year in order to keep the account active, which for domestic subscribers is Rs 1000. However, there is no upper limit for NRIs to invest in NPS. Tax benefits : NRIs/OCIs are eligible for all tax benefits available to domestic investors under section 80C & 80CCD(1B) respectively. KYC status : It's important to keep your KYC (Know Your Customer) documents updated and provide necessary proof of your tax residency status when enrolling in NPS. We hope this answers your query :)

Hi, transferring funds from an NPS Tier 2 account to a Tier 1 account is a straightforward process. However, it is important to note: Tax Applicability: Withdrawals from Tier 2 accounts are subject to tax as per the individual's income tax slab. However there is no additional tax levied on transferring the amount to Tier-1 via a one-way switch request (Read more about it at Central Recordkeeping Agency NSDL e-Governance Infrastructure Limited Standard Operating Procedure (SOP) for One way Switch - npscra.nsdl.co.in/download/non-government-sector/all-citizens-of-india/SOP-for-POP-POP-SP/SOP%20-%20One%20Way%20Switch.pdf ) Benefits of Tier 1: Tier 1 is the primary retirement account with additional tax benefits under Section 80C, 80CCD(1B), and 80CCD(2). We hope this solves your query :)

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@@RAKESHSHARMA-xf9oy you can withdraw 60k at retirement and 40k will go to an annuity plan without taxes.

You should allocate more to Equity to increase the return

+ AMC costs comparison?

You'll also have to consider the taxes saved for throughout the 30 years. NPS should definitely be used by the people in Old Regime and in a high tax bracket.

@@sooribabu4895 it’s about managing a portfolio. If you had to invest 100rs - you would invest let’s say 30% in Mutual fund (subject to market risk). And NPS has a large chunk in Government securities and Corporate bonds so you can invest let’s say 30% in NPS. You can’t risk all in ELSS MF as that way you are risking your corpus. It’s about balancing your chances of success in all future scenarios.

lol can you invest for 30 years ? Do you have that much patience?

Why would you invest only 388.88 Rs per month for 360month (30years)

@@owaislatief8805 Thank you for your feedback on the National Pension Scheme (NPS). I'd like to address some of the concerns you've raised: 1. Low Return: NPS has historically provided competitive returns, especially in the equity and corporate bond segments. For example, the equity funds under NPS have delivered average returns between 10-12% per annum over the long term. This performance is comparable to many other investment options. 2. No Guarantee of Minimum Pension: While NPS does not guarantee a minimum pension, it is designed to accumulate a significant corpus over time through disciplined savings and market-linked returns. The absence of a guarantee allows for potentially higher returns compared to guaranteed pension plans. 3. No Scope of Small/Midcap/SGB Participation: NPS allows for investment in diversified equity portfolios which include a mix of large-cap, mid-cap, and small-cap stocks. However, it’s true that direct investment in specific asset classes like Sovereign Gold Bonds (SGB) isn't possible. This diversification within equity aims to balance risk and returns. 4. Very Low Employer Contribution (14%): The employer contribution of up to 14% (for central government employees) is one of the highest among retirement plans globally. For private sector employees, this depends on employer policies, but any contribution adds significantly to the employee's retirement corpus. 5. Compulsion to Purchase Annuity Plan (40% of Corpus): The requirement to use 40% of the corpus to purchase an annuity ensures a steady stream of income post-retirement. This mitigates the risk of outliving your savings and provides financial security. 6. SLWP/Annuity Pension Taxable: While annuity income is taxable, the contributions to NPS (up to ₹2 lakh) enjoy significant tax benefits under Sections 80C and 80CCD of the Income Tax Act. This helps in reducing the overall tax burden during the accumulation phase. 7. Max Equity Allocation Limit of 75%: The 75% equity allocation cap is a risk management feature to protect subscribers from market volatility, especially as they near retirement. This balanced approach helps in maintaining growth potential while mitigating risks. 8. FoF Scheme Expenses: While NPS does involve some expenses, it is one of the lowest-cost retirement products in India. The total expense ratio is capped, ensuring that subscribers get maximum returns with minimal costs. NPS offers a balanced, cost-effective, and tax-efficient way to build a retirement corpus with the flexibility to choose your investment mix. While no single plan can meet every individual's needs perfectly, NPS provides a robust framework for most retirement planning requirements. If you have more questions or need further information, feel free to ask!

​thks 4 validating my points

NPS helps you save 62,400 rs ie assuming you invest 1.5lakhs in 80C bucket and 50k in 80ccd. So with a 2 lakh investment, you save 62k 😊

Hi, NPS Tier 2 accounts are not eligible for the same tax benefits as Tier 1 accounts. The key points to remember are: No Tax Deductions: Contributions to Tier 2 are not eligible for any tax deductions. Tax on Withdrawals: The withdrawals from Tier 2 accounts are taxed as per the individual’s applicable income tax slab. This means the entire withdrawn amount is added to the individual's income and taxed accordingly. However Tier-2 has no restrictions on withdrawal and allows user to invest upto 100% in all asset classes Zero Tax on Balance Transfer : Transferring the amount from Tier 2 to Tier 1 won’t attract any additional tax. Hence to avail the tax benefits under Section 80C & Section 80CCD(1B), you can opt for a balance transfer to your Tier-1 NPS account through a one way switch request (Read more about it at entral Recordkeeping Agency NSDL e-Governance Infrastructure Limited Standard Operating Procedure (SOP) for One way Switch - npscra.nsdl.co.in/download/non-government-sector/all-citizens-of-india/SOP-for-POP-POP-SP/SOP%20-%20One%20Way%20Switch.pdf ) We hope this answers your question :)

Hi, you can change your NPS scheme (i.e., switch between different pension fund managers or asset allocations) up to 4 times in a financial year. To answer your questions: > Frequency of Change: You can change your scheme 4 times a year. If you make a change today, you can make another change next month, provided you do not exceed the 4 changes in the financial year. > Corporate NPS Contributions: In the corporate NPS, while the employer's contributions are typically allocated to C (corporate bonds) and G (government securities), employees have the flexibility to change their individual contribution allocation. Employees can allocate their contributions to E (equity), C, or G as per their preference. However, the employer’s contribution allocation remains fixed as per the scheme set by the employer. We hope this solves your query :)

I believe it is only after 60, since it is a retirement fund.

@@kirankumarakula no confirmed it starts immediately

@@prafullaingole6122 when you leave professional service ie at 58 years.

buy medicines and give GST to governement. They wont let you live without giving GST.

Nope. That's over and above 80c for corporate nps. Read 80ccd2

@@monishravichandran9668 yes this is possible. You can now transfer your PF to NPS directly. Initiate this from EPF website - inform your employer.

There is a condition though that you should have 5 years of employment- eligibility criteria.

@@nikunj.sharma Thanks, I believe there is a circular from NPS (Protean) stating the same. But one of the NPS Fund team said it is not practically doable as there is no clarity from EPFO.

Hello, transferring funds from your Provident Fund (PF) to the National Pension System (NPS) is feasible and can be strategic. You withdraw the PF amount and deposit it into your NPS account. Key points to consider: Tax Implications: When you are continuing with your job, you can initiate withdrawal after 5 years. The withdrawal amount is tax free. Also the transferred funds to NPS is also tax free Long-term Benefits: NPS offers potential for higher returns through equity exposure and flexible investment options. To transfer: Visit the EPFO section on TrueFin (my.thetruefin.com/epf/) and select the “Need to withdraw money” tab to check your eligibility for PF withdrawal. You need to submit the transfer form to your employer, who will then initiate the balance transfer from EPF to NPS. Deposit the amount into your NPS account promptly to avoid missing out on high returns. We hope this answers your query :)

Bro the day i an investing i am saving 30% on that investment as per my tax slab. If you calculated closely. You would have paid that money as tax to the govt and not return. I am considering same tax saved amount is getting locked which pays the pension. It upto you either you pay the govt as tax or get the pension with the same saved tax money. Put a thought on this

The day you got into 30% slab you are going to choose nps. Elss will get exhausted with your epf itself

Its on top of 80c

Corporate nps is 10% of your basic to naps + voluntary upto 50k is tax free on and above your 80c limit of 1.5 lac

My corporate employer adds to nps around 90k plus i add 50k total 1.4 lac. With this i am saving 42k as tax

Just an employee.

No. Very detrimental to the economy. Read about it.

Hi, Thank you for the comment. To clarify - what I have said is that the Corpus at maturity is tax free - 60% that is available for withdrawal and remaining 40% to be used for purchase of Annuity - annuity payouts or pension is a seperate stream of income that you make post exit from NPS. By the same argument, income/gains that you make if this corpus is invested in any vehicle (apart from tax free bonds) will attract some form of tax. I would also like to highlight that in most other products, the gains at maturity will attract a capital gain tax. NPS maturity corpus does not attract any taxes - which is the point I was highlighting. Trust this clarifies.

Isn’t what’s said is correct considering retirement in mind. Especially with NPS providing a mix of equity, government bonds etc. Also he didn’t put down other products. Just spoke about the benefits from an NPS lens.