NATIONAL PENSION SYSTEM A GOVT. OF INDIA INITIATIVE

Features & Benefits

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  Tax Saving

  Tax deduction of up to Rs. 50,000 over and above the 80c limit.

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  Transparency

  Investors can check value of investment anytime.

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  Cost effective

  Investments start with minimum Rs. 500 and Rs. 1000 for Tier 1 and Tier 2, respectively.

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  Fund flexibility

  Investors choose stocks, government bonds and other securities as their asset and also switch from one option to another.

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  Portability

  Every investor is identified with a unique number and Permanent Retirement Account Number (PRAN), which can be transferred from one office to another.

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  Withdrawal on Maturity

  On completion of 60 years of age, investor receives a lump sum payment, while 40% of the accumulated pension is mandatorily used to purchase annuity for further monthly pension payments.

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  Early Withdrawal

  Before completion of 60 years of age, investor receives a lump sum payment, while 80% of the accumulated pension is mandatorily used to purchase annuity.

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  Partial Withdrawal

  After completion of 10 years in the scheme, investor can withdraw up to 25% of the contribution for certain reasons.

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  Tier 1 & Tier 2 account

  Tier 1: Is a Pension Account which is a non-withdrawal account. This account requires minimum contribution of Rs. 500 per month. +
  Tier 2: Is an Investment Account, which provides liquidity and option to withdraw entire investment. A minimum contribution of Rs. 1000 is required while opening the account and Rs. 250 per month. However, only investors with active Tier I account can subscribe for Tier 2 account.