National Pension System - Retirement Plan for All
- The National Pension System (NPS) is a defined-contribution-based pension system launched by the Government of India with effect from 1 January 2004. Like most other developing countries.
- Pension plans provide financial security and stability during old age when people don't have a regular source of income. Retirement plan ensures that people live with pride and without compromising on their standard of living during advancing years. Pension scheme gives an opportunity to invest and accumulate savings and get lump sum amount as regular income through annuity plan on retirement.
- There are two type of Account
- Tier-I account: This NPS account does not allow premature withdrawal and is available to all citizens from 1 May 2009.
- Tier-II account: This NPS account permits withdrawal for exceptional reasons only, prior to the retirement age.
- Under Swavalamban Scheme - External website that opens in a new window, the government will contribute a sum of Rs.1,000 to each eligible NPS subscriber who contributes a minimum of Rs.1,000 and maximum Rs.12,000 per annum. This scheme is presently applicable upto F.Y.2016-17. just 100/- rs Monthly investment.
- Age Limit 18 Years to 40 Years old.
