Ensuring the rest of your life is the best of your life!
A beautiful house, a world tour, or a relaxed life – retirement can be about all this and much more. Ensuring the lifestyle, you deserve in your golden years is all about choosing the right retirement plan which gives you growth, flexibility, and security for your hard-earned money.
Here is a solution that gives you all you have always wanted and much more – National Pension System (NPS). NPS is a government backed pension fund which gives you regular income post-retirement with a whole lot of other benefits.
Save tax while saving for your future along with the growth of your money, you get an added advantage of tax benefits with NPS Retail Solution. You can save tax up to Rs.15,600 per year.
NPS gives you an option to plan for your retirement as per your comfort.
If you are someone who likes complete control of your investments, this is a perfect choice for you. Here you can decide the distribution of your money basis your expected returns.
While you have the freedom to decide your investments under NPS, there are certain boundary conditions. These are as below:
– You can invest a maximum of 75% of your pension wealth in equity (Asset class E).
– You can invest a maximum of 5% of your pension wealth in Alternate assets (Asset class A).
– You can invest your entire pension wealth in C or G asset classes.
– You have the option to change your investment choice twice a year.
For your ease and convenience NPS gives you an option to plan for your retirement with an auto choice. Here, basis your requirement.
Basis what you choose, your money will be invested in various asset classes. The distribution percentage of money is mentioned below:
| Age | Equity | Corporate Bonds | Govt. Securities |
|---|---|---|---|
| ≤ 35 yrs | 75% | 10% | 15% |
| 36 | 71% | 11% | 18% |
| 37 | 67% | 12% | 21% |
| 38 | 63% | 13% | 24% |
| 39 | 59% | 14% | 27% |
| 40 | 55% | 15% | 30% |
| 41 | 51% | 16% | 33% |
| 42 | 47% | 17% | 36% |
| 43 | 43% | 18% | 39% |
| 44 | 39% | 19% | 42% |
| 45 | 35% | 20% | 45% |
| 46 | 32% | 20% | 48% |
| 47 | 29% | 20% | 51% |
| 48 | 26% | 20% | 54% |
| 49 | 23% | 20% | 57% |
| 50 | 20% | 20% | 60% |
| 51 | 19% | 18% | 63% |
| 52 | 18% | 16% | 66% |
| 53 | 17% | 14% | 69% |
| 54 | 16% | 12% | 72% |
| 55 | 15% | 10% | 75% |