NPS is a transparent and cost-effective system wherein the pension contributions are invested in a pension fund scheme and the employee will be able to know the value of an investment and saving on a day-to-day basis.
A tier-1 NPS account enables the beneficiary to save a retirement corpus through regular deposits. You can hold the NPS account up to the age of 60 and continuously invest funds until maturity. The NPS account helps the retirees to get a regular pension post-retirement.
The tier-2 account is also a savings account. But contrary to the Tier-1 account, this account allows you to withdraw the accumulated funds at any point in time without any restrictions on withdrawal. Thus, it does not contain any tax benefits and is mainly used for savings funds for any emergency or for fulfilling certain life goals.
According to the rules specified by the government, an Indian citizen above the age of 18 years to invest in the scheme. You must submit your KYC documents to invest in this scheme.
The NPS is a comprehensive tool using which you can calculate and find an approximate maturity value of the national pension scheme. The NPS calculator is an online tool that allows you to evaluate the amount of money that can be created by depositing a specific sum of money at the age of 60 years. Here you only need to enter the necessary inputs containing details such as the total amount invested, total interest earned, and the maturity amount and click on the calculate button. The output is displayed on the screen automatically by clicking the calculate button.
The NPS is a central government initiative that was introduced in the year 2004 in order to provide a pension based on the contributions made. The main objective of the scheme is to provide retirement income and inculcate the habit of saving among citizens. The scheme encompasses both the organized and the unorganized sectors and is a cost-effective method of creating a retirement corpus.
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