NPS: NPS-Swavalamban can be started with minimum investment of Rs 100.NPS, the Pension Fund Regulatory and Development Authority (PFRDA)'s National Pension System-Swavalamban - also known as National Pension System-Lite (NPS-Lite) - is a pension scheme focused on the economically disadvantaged individual.
Individuals in the age group of 18-60 years can join NPS-Lite, and contribute to the pension scheme till age 60, according to NSDL's website -npscra.nsdl.co.in.
PFRDA has appointed NSDL e-Governance Infrastructure as the central record-keeping agency (CRA) for the NPS-Lite pension scheme.
( How NPS works)The NPS-Swavalamban scheme can be started with a minimum investment of Rs 100.
Though there is no lower limit set for contributions per year, it is recommended that a contribution of at least Rs 1,000 per year is made to ensure a reasonable pension after retirement, according to the NSDL website.A higher contribution amount will yield higher pension and since the Swavalamban benefit is available for contribution up to Rs 12,000, it may be desirable to save higher amounts in your NPS-Swavalamban account, NSDL noted.Contributions under the NPS-Swavalamban scheme are invested in a single scheme consisting of equity, corporate bonds and government securities.
( What NPS investment choices mean for you)Withdrawal rules applicable to theNPS-Litepension schemeSuperannuation: At least 40 per cent of the accumulated pension wealth of the subscriber has to be utilised for purchase of annuity providing for monthly pension of the subscriber and the balance is paid as lump sum to the subscriber, according to the NSDL website.
(Wondering what to do with NPS account after turning 60 Here are your options)Death: The entire accumulated pension wealth would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.Premature exit before superannuation: In case a person wants to withdraw before superannuation, at least 80 per cent of the accumulated pension wealth of the subscriber should be utilised for purchase of an annuity providing the monthly pension of the subscriber and the balance is paid as a lump sum to the subscriber, according to the NSDL portal.
( NPS exit rules explained)Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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