People’s interest in NPS is gradually increasing. A study by Max Life Insurance has shown that 90 percent of people consider this scheme safe and reliable. A major reason for this is that this scheme has the support of the government.
About 90 percent of the people involved in the study believed that NPS is a safe and reliable option for retirement planning. Dhariwal said that a major feature of NPS is that it is the lowest cost retirement scheme in the market. This means that most of the subscriber’s investment money is used to create a good fund in the long term. Being linked to the market, its return in the long term is very good. In this, subscribers can choose the option according to their risk taking capacity.
People’s interest in savings and investment has increased. But, retirement planning is not included in their priority. This information has been received from a study by Max Life Insurance. About 50 percent of the people involved in the study believed that their savings money would barely last for 10 years after retirement. About 31 people said that they do not know how much money they will need after retirement and how big their retirement fund should be. However, 44 percent people believed that retirement planning should start before the age of 35 years.
Government scheme
Ranbhir Singh Dhariwal, CEO of Max Life Pension Fund Management, said that NPS can prove to be very helpful in retirement planning. He said that awareness about NPS is increasing among the people. In the last three years, awareness about it has increased from 59 percent to 70 percent. In Tier 2 cities, it is 78 percent. He said that there are many options in NPS, which give an opportunity to create good wealth in the long term. This is a government scheme, so it is easy to trust it.
Great returns in the long term
About 90 percent of the people involved in the study believed that NPS is a safe and reliable option for retirement planning. Dhariwal said that a major feature of NPS is that it is the lowest cost retirement scheme in the market. This means that most of the subscriber’s investment money is used to create a good fund in the long term. Due to being linked to the market, its returns are very good in the long term. In this, the subscriber can choose the option according to his risk taking capacity.
Withdrawal facility if needed
NPS is also attractive in terms of liquidity. The subscriber can withdraw 25 percent of the fund three times if he needs money. In this way, it is like an emergency fund for the subscribers. It also gives the subscribers an opportunity to do tax savings. This is the only investment product in which investment is allowed for deduction even in the new income tax regime. Self-employed people along with employed people are allowed to invest in NPS. The NPS account can be kept active by investing at least Rs 1,000.
