NPS Investment After Retirement – National Pension System (NPS) is a social security scheme run by the Central Government. The Pension Fund and Regulatory Development Authority (PFRDA) has made several changes to make NPS flexible.
NPS Investment: In the National Pension System (NPS), not only is a large lump sum amount received after retirement, pension is also arranged. If you are thinking that investing in NPS can be done only while in job, then you are thinking wrong. You can continue investing in NPS even after retirement. Investing in NPS can be done if the age is above 60 and below 65. The shareholder can invest for a minimum of three years and till the maximum age of 70 years.
NPS is managed by pension fund managers appointed by the Pension Fund Regulatory and Development Authority (PFRDA). You can choose from a total of 7 pension fund managers. Customers can operate their account from anywhere, even if they change their city or employment. You can continue investing in NPS from any location without the fear of closure if there is a change in city or place of employment.
60 percent funds can be withdrawn
According to the new rules, no person can withdraw the entire fund on maturity. It is necessary to buy annuity with 40 percent of the fund. Pension is given after retirement from this annuity. The remaining 60 percent of the funds can be withdrawn. If you do not want to withdraw the amount deposited in NPS even after retirement, then the government will allow you to do so.
Tax exemption
Tax exemption can also be availed on investments made in this scheme under Section 80CCD (1), Section 80CCD (1B), and Section 80CCD (2) of the Indian Income Tax Act, 1961. Under Section 80CCD (1B), you can be entitled to an annual tax deduction of Rs 50,000 by investing in NPS. This gives tax exemption of Rs 1,50,000 lakh under Section 80C.
Open two accounts
2 accounts can be opened in NPS. Tier 1 and Tier 2. Tier 2 account is a savings account. It is voluntary. There is no restriction on withdrawing money from it. Tier 1 account is a retirement account. Some conditions apply when withdrawing money from this account.
