▪︎ GOVERNMENT SCHEME 1
â– #NATIONAL #PENSION #SYSTEM.
â–¡ WHY IN NEWS ?
The National Pension System (NPS) will no longer compel investors to convert 40% of their accumulated retirement corpus into an annuity.
â–¡ WHY SUCH A DECISION ?
â—‡ Poor yields on annuities and high inflation are translating into negative returns.
â—‡ Annuities are taxable, deducting the tax and factoring in inflation means annuities are yielding negative returns.
â–¡ ABOUT NATIONAL PENSION SYSTEM :-
â—‡ NPS is a government-sponsored pension scheme.
â—‡ Launched in January 2004 for government employees.
â—‡ It was extended to all citizens of Indian on a voluntary basis from May 2009 and to corporates in December 2011 and to Non-Resident Indians in October 2015.
â—‡ PFRDA is the statutory authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the NPS.
â—‡ The scheme allows subscribers to contribute regularly in a pension account during their working life.
â–¡ WHO CAN JOIN NPS ?
â—‡ Any Indian citizen between 18 and 60 years can join NPS.
â—‡ Must comply with know your customer (KYC) norms.
â—‡ An NRI can join NPS.
â—‡ Now, any Indian citizen, resident or non-resident and OCIs are eligible to join NPS till age of 65 years.
â– #NATIONAL #PENSION #SYSTEM.
â–¡ WHY IN NEWS ?
The National Pension System (NPS) will no longer compel investors to convert 40% of their accumulated retirement corpus into an annuity.
â–¡ WHY SUCH A DECISION ?
â—‡ Poor yields on annuities and high inflation are translating into negative returns.
â—‡ Annuities are taxable, deducting the tax and factoring in inflation means annuities are yielding negative returns.
â–¡ ABOUT NATIONAL PENSION SYSTEM :-
â—‡ NPS is a government-sponsored pension scheme.
â—‡ Launched in January 2004 for government employees.
â—‡ It was extended to all citizens of Indian on a voluntary basis from May 2009 and to corporates in December 2011 and to Non-Resident Indians in October 2015.
â—‡ PFRDA is the statutory authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the NPS.
â—‡ The scheme allows subscribers to contribute regularly in a pension account during their working life.
â–¡ WHO CAN JOIN NPS ?
â—‡ Any Indian citizen between 18 and 60 years can join NPS.
â—‡ Must comply with know your customer (KYC) norms.
â—‡ An NRI can join NPS.
â—‡ Now, any Indian citizen, resident or non-resident and OCIs are eligible to join NPS till age of 65 years.