PFRDA has also allowed subscribers to open APS accounts through One Time Password (OTP). Under this, customers of banks who want to open NPS account through internet banking facility of their bank, can open NPS account by getting OTP on their registered mobile number.
new Delhi. If you want to get a pension with a lump sum after retirement, then you can invest in the National Pension System (NPS). Opening an account in NPS has become easier. You can open an NPS account through just one OTP (sitting at home). Recently, PFRDA has also allowed subscribers to open APS accounts through One Time Password (OTP). Under this, customers of banks who want to open NPS account through internet banking facility of their bank can open NPS account by getting OTP on their registered mobile number. Let’s know how you can get 45 lakh rupees and 22,500 rupees pension through NPS.
What are the types of accounts
NPS offers the facility of opening 2 types of accounts. Tier-1 account is a pension account. At the same time, Tier-2 account is a voluntary savings account. NPS subscribers who have Tier-1 account can open Tier-2 account.
Any citizen of India, who is between 18 and 65 years of age, can take part in this scheme after some necessary procedures. The responsibility of investing the amount deposited in the NPS is given by the PFRDA to the registered pension fund managers. They invest your investments in equity, government securities and non-government securities as well as fixed income instruments.
Understand from NPS calculator,
if you are 30 years old and you invest 6 thousand rupees in NPS every month till the age of 60 years, then after 60 years you can get a lump sum of 45 lakh rupees. If you invest 6 thousand rupees every month for 30 years, your total contribution will be 21.6 lakh rupees. According to the estimated 8 percent return, the total at maturity will be 90 lakh rupees. Will have to buy 50 percent annuity. Estimated return on annuity 6 percent. You can withdraw 60 percent of the maturity amount. It will be tax free. At the age of 60, you will get a monthly pension of Rs 22,500 and a lump sum of Rs 45 lakh.
An annuity is a contract between you and the insurance company. Under this contract, it is necessary to purchase an annuity of at least 40 percent of the amount in the plan in the National Pension System (NPS). The higher this amount, the higher the pension amount. The amount invested under annuity is received as pension after retirement and the remaining amount of NPS scheme can be withdrawn outright.