National Pension Scheme

National Pension System (NPS)

Secure Your Retirement with a Flexible & Tax-Efficient Pension Plan

The National Pension System (NPS) is a government-backed, voluntary retirement savings scheme designed to help you build a substantial corpus for your post-retirement life. It encourages disciplined long-term investing with the benefit of attractive tax savings and flexible investment choices.

What is NPS?

NPS is a defined contribution pension scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It allows you to invest regularly during your working years and accumulate a retirement corpus, which can be used to secure a steady pension after retirement.

Key Features of NPS

  • Open to All: Available to Indian citizens aged 18 to 65, including salaried employees, self-employed individuals, and NRIs.
  • Flexible Contributions: Make regular or one-time contributions as per your convenience, with no upper limit on investment amount.
  • Choice of Investment Options: Invest across equity, corporate bonds, government securities, and alternative assets by selecting from various pension fund managers.
  • Market-Linked Returns: Your savings grow based on market performance, offering potential for higher returns compared to traditional fixed-income retirement schemes.
  • Tax Benefits: Contributions up to ₹1.5 lakh qualify for tax deductions under Section 80C. An additional deduction of ₹50,000 is available under Section 80CCD(1B).
  • Lock-in Until Retirement: Funds remain invested until retirement age (currently 60 years), ensuring long-term wealth accumulation.

How Does NPS Work?

  1. Account Opening: Open an NPS account with a Point of Presence (POP) like Shubh Financial Hub.
  2. Contributions: Regularly contribute to your NPS account via lump sum or systematic deposits.
  3. Investment & Growth: Your contributions are invested in a mix of equities, government bonds, and corporate debt based on your chosen investment option.
  4. Withdrawal & Pension: At retirement, withdraw up to 60% of your accumulated corpus tax-free; the remaining 40% must be used to purchase an annuity for a monthly pension.

Types of NPS Accounts

  • Tier 1 Account: The primary retirement account with tax benefits and withdrawal restrictions until retirement.
  • Tier 2 Account: A voluntary savings account with no lock-in or tax benefits; allows flexible withdrawals anytime.

Why Choose NPS with Shubh Financial Hub?

  • Expert Guidance: Personalized assistance to help you choose the right investment strategy and pension fund manager.
  • Seamless Account Management: Easy onboarding, contribution tracking, and portfolio monitoring through our platform.
  • Transparent Process: Regular updates and reports to keep you informed about your pension growth.
  • Tax Optimization: Maximize your tax benefits while building a secure retirement corpus.

Plan Today for a Comfortable Tomorrow

The National Pension System is a disciplined, cost-effective, and market-linked pension solution to secure your retirement goals. Start investing with Shubh Financial Hub and take control of your financial future today.