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What is NPS ?
NPS is a long-term investment for your retirement. It is managed by the Pension Fund Regulatory and Development Authority (PFRDA), and the NPS Trust. The National Pension System (NPS) provides tax benefits along with historically observed double-digit compounding of savings.
- Upon retirement, subscribers receive a tax-free lump sum, along with a monthly pension.
- It involves regular contributions to build a retirement fund.
- It is the most cost-effective method for obtaining professional management of your retirement fund.
Why Choose NPS?
Tax Savings
Market-Linked Growth
Flexible & Affordable Contributions
Portable Account
Benefits of Investing in National Pension Scheme
Tax Savings
Tax deductions under Section 80CCD(1B) of the Income Tax Act.
Retirement Income
Post retirement, subscribers receive a tax-free lumpsum plus monthly pension amount.
Government-Backed
A secure and reliable investment option backed by the Government of India.
Investment Growth
Potential for long-term growth through diversified investments.
How does the National Pension System (NPS) work?
You contribute regularly to your NPS account, either through regular instalments or lump sum payments.
Your contributions are invested in a diversified portfolio of assets, such as government securities, corporate bonds, and equities.
Your investments grow over time based on market performance and your chosen asset allocation.
Upon retirement, subscribers receive a tax-free lump sum along with a monthly pension payment.
Between 40% and 100% of the final NPS corpus must be allocated to a registered annuity plan to ensure a lifelong pension payout.
How To Open an NPS Account ?
Sign up
Simply download and open your ABCD App and select ‘NPS’ under Invest.
Check for an existing account
Check if you already have an NPS account. If yes, you will be given an option to transfer your existing account from another Points of Presence (PoP) to ours.
Complete your KYC
Complete your KYC (via Aadhaar/PAN)
Choose your NPS account type
Tier 1: Primary retirement account with tax benefits.
Tier 2: Flexible account for voluntary savings.
Select Your Fund Manager & Asset Allocation
You can choose from fund managers.
Start Contributing and Track Your Returns
Decide on an amount that you are comfortable with. Contribute consistently and keep a check on your returns.
NPS Investment Options
Customisation
You control your portfolio by allocating funds across four asset classes - Equity (high risk, high potential return), Corporate Bonds, Government Securities (low risk), and Alternate Assets (high volatility, 5% cap).
Ideal for
Investors who are comfortable with market fluctuations, risk management, and actively rebalancing their portfolio.
Requires
Understanding of risk tolerance and investment goals to determine appropriate asset allocation.
Automatic Adjustments
Your portfolio automatically adjusts based on your age, gradually shifting from higher equity exposure to lower risk as you approach retirement.
Ideal for
Investors who prefer a hands-off approach or lack investment expertise.
Options
Three risk levels available - LC 75 (high equity), LC 50 (moderate equity), and LC 25 (low equity).
How to Open an NPS Account with ABCD?
Open the ABCD App and navigate to ‘Invest’
Click on the NPS option.
Select ‘Start now’.
Select the Central Record Agency (CRA) to open your NPS account.
Submit necessary information like PAN, address, and bank details.
Deposit the minimum required amount.
You will be assigned a Permanent Retirement Account Number (PRAN).
How to Make an Investment in the National Pension System (NPS)?
-
Step 1 : Select from options like
Regular Contributions : Make consistent monthly/quarterly/annual contributions.
Lump Sum Contributions : Invest a larger amount at once
-
Step 1 : Choose Between
Auto Choice : Your asset allocation adjusts automatically based on your age.
Active Choice : You select the percentage of your contributions to be invested in equities, government securities, and corporate bonds.
-
Step 3 : Select Between
Online : Contribute through the NPS website or net banking.
Offline : Contribute through designated Points of Presence (POPs) like banks.
Eligibility Criteria and Fees & Charges for National Pension System (NPS)
Eligibility Criteria
Here are the requirements for you to be eligible for the National Pension Scheme:
- Citizenship Indian citizens, including residents, NRIs, and OCIs.
- Age Between 18 and 70 years at the time of application.
- KYC Compliance Must adhere to Know Your Customer (KYC) norms.
- Individual Accounts NPS accounts are for individuals only; they cannot be opened for others.
- Legal Competence Must be legally capable of entering into a contract according to the Indian Contract Act.
Fees and Charges
Here are the different types of fees and charges for the National Pension System:
- PRAN Card Opening ₹40 (Physical), ₹18 (ePRAN), ₹4 (ePRAN - KCRA)
- Annual Maintenance ₹69 (PCRA), ₹65 (CCRA), ₹57.63 (KCRA)
- Transaction Charges ₹3.75 (PCRA), ₹3.50 (CCRA), ₹3.36 (KCRA); Free for Lite/APY accounts
- Exit/Withdrawal 0.125% of corpus (Min ₹125, Max ₹500)
- Persistency Fees ₹50 - ₹100 per annum based on contributions
- Payment Gateway Credit Cards: 0.75% of value + GST; UPI & Internet Banking: Free
Customer Satisfaction Stories
Aditya Birla Sun Life Insurance Customer
Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.
Aditya Birla Sun Life Insurance Customer
Haryana, India
Aditya Birla Sun Life Insurance Customer
Entire surrender process was quite smooth with timely documentation and payout. Great experience!
Aditya Birla Sun Life Insurance Customer
Gujarat, India
Your Retirement,
Think Smart Investment – Choose NPS!
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