Why NPS Should Be a Part of Your Retirement Plan: 5 Things to Know

What if we told you there's a government-backed way to build a stress-free, financially secure retirement, and you may not even use it yet? That’s right. Let us discuss the National Pension System (NPS) for those just starting their careers and even those halfway through it.

Advertisement

With many financial products available, NPS is the most efficient and dependable for constructing your retirement corpus. This feature is largely ignored, but once you delve into the understanding of the product, you will certainly question why you didn’t start using it sooner. Here, we can discuss five compelling reasons why NPS should make it to your best retirement plan in India and why it could be the wisest financial choice you ever make.

1) Higher Returns Than You’d Expect Let’s face it: as a society, we consider retirement savings slow, tedious, and relatively safe. But here’s the shocker: NPS offers you better returns than FDs and PPFs.

Why? It invests in a balanced mix of equities, corporate bonds, and government securities. So, over time, your money isn’t just collecting dust; it’s actively growing.

Want to get an idea of how much you’ll have by retirement? Try using a retirement calculator. It’s a great way to visualise your NPS growth.

2) Big Tax Benefits You Can’t Ignore Do you love saving money? Who doesn’t? NPS allows you to claim deductions of up to Rs 2 lakh every year, Rs 1.5 lakh under Section 80C, and an additional Rs 50,000 under Section 80CCD(1B). This means your investments don’t just grow; they reduce your tax bill today. That’s a win-win.

Combine that with an immediate annuity plan, and you can even ensure guaranteed monthly income once you retire. That’s peace of mind with zero guesswork.

3) Safe and Low-Risk If market fluctuations keep you up at night, NPS ensures safe sleep. Your funds are supervised directly by the Pension Fund Regulatory and Development Authority (PFRDA), and professional fund managers take care of your funds. This ensures that your retirement savings are not at risk.

If you are searching for a stable option with good returns, NPS will comfortably be the top retirement plan for people in India.

4) You’re in Control: Flexibility Like No Other As compared to other rigid financial items, NPS allows you to make contributions at your preferred time, so long as they meet your budgetary needs. Want to invest more this month and less next month? Fine.

You can even switch between different fund managers or change your equity allocation. That flexibility makes it easy to tailor your retirement journey to your life.

You can adjust your strategy to meet your goals using a retirement calculator. No more guessing, just clarity.

5) Government-Backed Trust & Long-Term Security Knowing the Government of India supports your future creates a sense of security. Unlike other schemes, NPS is long-term and creates wealth as it sustains compliance and oversight.

It’s not just safe; it’s trustworthy. And that’s a big deal when you’re planning decades. Pair this with an immediate annuity plan at retirement, and you can lock in lifelong income without worry.

So, Why Should You Care? Because retirement shouldn’t be a time to stress over money. Instead, it’s an ideal period to reap the benefits of your career and time spent with your family and to embrace the newfound freedom.

And guess what? Becoming a finance wizard isn’t necessary for you to enjoy the perks. The right set of tools, such as an NPS, a trustworthy retirement calculator, or even an immediate annuity plan, would do the trick to turn savings into income. Just start and be reliable with your plans, and watch your future unravel before you, just as you always desired.

Final Thoughts NPS isn’t just another savings scheme; it’s a smart, structured, and secure way to build a financially free retirement. And if you’re serious about planning, don’t stop there. PNB MetLife offers the best retirement plans in India that work seamlessly with tools like NPS and immediate annuity plans to give you a complete retirement solution.

Take the first step. Open that NPS account, explore your options, and plan with confidence. Your future self will thank you.

FAQs 1) Can I have both an NPS and an EPF account? You can contribute to NPS and EPF simultaneously and enjoy the respective benefits.

2) What happens to my NPS if I change jobs? Your NPS account is portable. It follows you, not your employer.

3) Can I withdraw money from NPS before retirement? Yes, partial withdrawals are allowed for specific reasons like education, illness, or marriage.

(Disclaimer: The above press release comes to you under an arrangement with NRDPL and PTI takes no editorial responsibility for the same.). PWR

(The story has come from a syndicated feed and has not been edited by the Tribune Staff).