What are rules for withdrawal under NPS?
When you are 60 years old, that is normal retirement age or NRA, you must annuitize (buy annuities for) 40% of your pension wealth. The remaining 60% can be withdrawn as a lump sum right…
Retirement Planning Questions
If the subscriber dies before 60 years, who will receive benefits?
On the subscriber’s unexpected death, 100% of the accumulated pension is paid to the nominee or legal heir of the subscriber. There is no annuity purchase or a monthly pension. RETIREMENT PLANNING ONLINE ADVISOR
Suppose I retire before 60 years and stop contributing. What happens?
In this case, at least 80% of your accumulated pension must be used to buy annuities, with the balance being paid to you as a lump sum.
What are the rules for withdrawal of pension funds when I am 60 years old?
You must use at least 40% of your accumulated pension to buy annuities. The balance can be received as a lump sum benefit. RETIREMENT PLANNING ONLINE ADVISOR
Are there income tax benefits under NPS?
Yes. Employed individuals are eligible for a tax deduction of up to 10% of salary (basic + DA) under Sec 80CCD(1) of the Income Tax Act 1961, with a ceiling of up to Rs.1.5 lakh…
Can nominees be changed after registration? Are there charges?
Yes. Nominees in your NPS Tier I account can be changed whenever you want after you receive your PRAN. Nominations made at the time of registration of PRAN do not incur charges. Subsequent changes are…
Who can be a nominee?
Only individuals are eligible to be nominees. An NPS subscriber can nominate up to three nominees. Nominee details cannot be repeated more than once. The sum of the shares should be equal to 100% of…
Does NPS offer nomination facilities?
Yes, a nominee must be appointed at the time of account opening with the NPS via the prescribed form. You can appoint up to three nominees for the Tier I and Tier II account mentioning…
What subscriber schemes are available?
There are two subscriber investment schemes by the NPS: Active choice where the individual can decide on which asset classes to invest and the amount to be invested in each, and Auto choice, a lifecycle…
Who are the pension fund managers for NPS?
The NPS has eight pension fund managers. These are: ICICI Prudential Pension Fund, LIC Pension Fund, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Fund, UTI Retirement Solutions Pension Fund LIC Pension Fund,…