Do You Work In Private? Take Advantage Of This Scheme, You Will Get Pension

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Pension scheme:Pension scheme: If you are doing private job, you can also get pension. Let’s know how to avail this pension scheme.

After retirement, everyone wants to avoid financial hardship in old age. There was already a pension scheme for government employees but most of the people working in the private sector are worried about the pension because most of the private companies do not care about their old age. So let’s know which pension scheme will give you pension even after private job.

A new pension system i.e. National Pension Scheme (NPS) was launched by the Government of India for all citizens. Income is provided in the form of old age pension after the beneficiary of this scheme attains the age of 60 years. The NPS scheme is implemented through designated branches of the bank i.e. point of presence-service providers.

Any person between 18 to 70 years can invest under this scheme. At maturity, 60 percent of the amount can be withdrawn from this scheme and the remaining amount can be invested by purchasing an annuity. Under this, tax exemption can be claimed under Section 80C and 80CCD of the Income Tax Department. Even after withdrawing 60 percent of the amount from this account, you can draw pension every month under this scheme

Monthly or yearly investment is available in NPS account. You can start investing in NPS from Rs 1,000 per month and continue till the age of 70.

Who can open an account

If you are doing private job then you can avail retirement plan and additional tax benefits by opening NPS account. You can open online account from home. NPS is run by the Pension Fund Regulatory and Development Authority, which makes it quite secure. In which central employees, state government employees, private sector employees and common citizens can also open accounts.

How will you benefit?

According to this scheme, you can start investing in NPS from Rs 1,000 per month. On investing in it, 40 per cent annuity needs to be purchased while 60 per cent can be withdrawn in lump sum after 60 years. This amount can be withdrawn anytime up to the age of 75 years. If the total corpus is up to 5 lakhs, the entire corpus can be withdrawn. On the other hand, if you withdraw before 60 years, only 20 percent of the total corpus can be withdrawn. 80 percent of the amount has to be invested. You can fully withdraw up to 2.5 lakhs.