National Pension Scheme Benefits | National Pension Scheme Eligibility | National Pension Scheme Documents Required | How To Apply For National Pension Scheme Online | National Pension Scheme Online Registration: The National Pension System (NPS) is a government-backed pension scheme in India, launched by the Pension Fund Regulatory and Development Authority (PFRDA) in January 2004. The scheme aims to provide a sustainable and secure source of income to citizens during their old age, after they have retired from their jobs. The scheme is open to all citizens of India between the age of 18 and 65 years, including self-employed individuals and employees of the government and private sector organizations.
The NPS is a defined contribution scheme, which means that the pension is based on the contributions made by the individual and the returns generated on those contributions. The scheme has two types of accounts: Tier 1 and Tier 2. Tier 1 is a non-withdrawable account and is mandatory for all subscribers, while Tier 2 is a withdrawable account, which is optional.
The scheme is administered by the PFRDA and is implemented through various Points of Presence (POPs), which are banks and financial institutions that provide the necessary services and support. The scheme is also supported by various intermediaries, such as National Pension System Trust (NPS Trust) and Central Recordkeeping Agency (CRA), which manage the scheme’s assets and maintain records of the subscribers.
National Pension Scheme Objective:
The objective of the National Pension System (NPS) is to provide a sustainable and secure source of income to citizens during their old age, after they have retired from their jobs. The main objectives of the scheme are:
- To provide citizens with a pension scheme that is sustainable and secure
- To provide citizens with a defined contribution scheme, where the pension is based on the contributions made by the individual and the returns generated on those contributions.
- To provide citizens with two types of accounts: Tier 1 and Tier 2. Tier 1 is a non-withdrawable account and is mandatory for all subscribers, while Tier 2 is a withdrawable account, which is optional.
- To provide citizens with flexibility in terms of investment options and pension withdrawal.
- To provide citizens with tax benefits under Section 80CCD of the Income Tax Act.
- To provide citizens with a government-backed and professionally managed pension scheme
- To provide citizens with a scheme that is open to all citizens of India, including self-employed individuals and employees of the government and private sector organizations.
- To provide citizens with a scheme that is affordable and has a low minimum contribution requirement.
Overall, the National Pension System (NPS) is a government-backed pension scheme that aims to provide a sustainable and secure source of income to citizens during their old age, after they have retired from their jobs. The scheme is open to all citizens of India, is affordable, and provides flexibility in terms of investment options and pension withdrawal. The scheme is also supported by various intermediaries, such as National Pension System Trust (NPS Trust) and Central Recordkeeping Agency (CRA), which manage the scheme’s assets and maintain records of the subscribers.
National Pension Scheme Main key Features:
The National Pension System (NPS) has several key features designed to provide a sustainable and secure source of income to citizens during their old age:
- Defined Contribution: The scheme is a defined contribution scheme, which means that the pension is based on the contributions made by the individual and the returns generated on those contributions.
- Two types of accounts: The scheme has two types of accounts: Tier 1 and Tier 2. Tier 1 is a non-withdrawable account and is mandatory for all subscribers, while Tier 2 is a withdrawable account, which is optional.
- Flexibility: The scheme provides flexibility in terms of investment options and pension withdrawal.
- Tax benefits: The scheme provides tax benefits under Section 80CCD of the Income Tax Act.
- Professional management: The scheme is professionally managed by the Pension Fund Regulatory and Development Authority (PFRDA)
- Government-backed: The scheme is government-backed and administered by Points of Presence (POPs)
- Age eligibility: The scheme is open to citizens who are between 18 and 65 years of age
- Open to all citizens of India: The scheme is open to all citizens of India, including self-employed individuals and employees of the government and private sector organizations.
- Affordable: The scheme has a low minimum contribution requirement
- Intermediary Support: The scheme is supported by intermediaries such as National Pension System Trust (NPS Trust) and Central Recordkeeping Agency (CRA)
Overall, the National Pension System (NPS) is a government-backed pension scheme that aims to provide a sustainable and secure source of income to citizens during their old age. The scheme is defined contribution, which means that the pension is based on the contributions made by the individual and the returns generated on those contributions. The scheme is flexible, providing two types of accounts, and has tax benefits, and is professionally managed. The scheme is open to citizens who are between 18 and 65 years of age, and is open to all citizens of India, including self-employed individuals and employees of the government and private sector organizations.
Benefits of National Pension Scheme:
Benefits of NPS:
- Affordable: The scheme is affordable, with a low minimum contribution requirement.
- Flexibility: The scheme provides flexibility in terms of investment options and pension withdrawal.
- Tax benefits: The scheme provides tax benefits under Section 80CCD of the Income Tax Act.
- Professional management: The scheme is professionally managed by the Pension Fund Regulatory and Development Authority (PFRDA)
- Government-backed: The scheme is government
National Pension Scheme Criteria and Eligibility:
Eligibility Criteria for NPS:
- The individual should be between 18 and 65 years of age.
- The scheme is open to all citizens of India, including self-employed individuals and employees of the government and private sector organizations.
How to Apply for National Pension Scheme Online Registration:
The National Pension System (NPS) can be applied for online by following these steps:
- Visit the official website of Pension Fund Regulatory and Development Authority (PFRDA) https://www.npscra.nsdl.co.in/
- Click on the “New Subscriber Registration” button on the homepage
- Fill in the required details, including personal information, contact details, and bank account details
- Upload the required documents, including proof of identity, age, and address, and PAN card
- Verify the details and submit the application form
- An activation link will be sent to your registered email address and mobile number, which you need to click on to activate your account.
- Once activated, you can log in to your account and start contributing to the scheme
It is important to note that the applicant should have a savings bank account which should be linked with the scheme for automatic enrollment and renewal of the policy. Also, the individual should ensure that the savings bank account has sufficient balance to pay the annual premium of the scheme.
Alternatively, the scheme can be enrolled by visiting the nearest Point of Presence (POP), where the POP will assist with the enrollment process. The applicant should also have a PAN card, as it is mandatory for opening an NPS account.