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User guide to opening an NPS account: A few points to consider

Tax Benefits of NPS: How you can reap them? A must read.

How can NPS Benefits help you in your golden years? Explained

Power Your Retirement Savings with Online NPS Account Opening

December 30, 2023

In today’s digital world, keeping up with technological advancements in the financial sector is not just a choice but has become a necessity. One such leap into the digital future is the seamless process of opening a National Pension System or New Pension Scheme (NPS) account online. If you’re still thinking about how to take control of your financial destiny for the future, don’t worry at all. This blog will demystify the entire online process and elevate your savings game.

Navigating the Online NPS Landscape

In a world where a click can shape your financial future, the journey to open an NPS account online begins at your fingertips. Imagine the convenience of starting this process from the comfort of your home, office, or favorite coffee shop. No paperwork, no queues – it is just you and your device unlocking the doors to a secure retirement plan.

Step-by-Step Guide to NPS Account Online Activation

To initiate an NPS account opening online, you can opt for registration through the KFin Technologies website. Follow these steps to open an NPS account online:

1. Go to https://www.nps.kfintech.com/

2. Click on the ‘Join NPS’ option. You will be directed to a new page.

3. Input the required information, including:

– Your full name

– Date of birth

– Mobile number

– PAN number

– Email ID

– Application type

– Resident type

– Agree to the terms and conditions

4. Click on ‘Create an account.’ Subsequently, you will be redirected to the NPS page.

Things to Keep in Mind

Ensure that the accuracy of the entered information is correct.
Designate a nominee for your NPS account so that your hard-earned savings reach your loved ones in case of unforeseen circumstances.
Specify the nature of your contribution preferences based on your requirements and goals.
You can now choose more than one Pension Fund Manager who can adapt to your investment goals.

Conclusion

By following these steps, you will be able to successfully navigate the digital landscape to open an NPS account online. However, remember that the journey doesn’t end here at all. Regularly monitor your NPS account, stay informed about market trends, and consider adjusting your contributions based on your evolving financial goals.

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NPS Calculator is Happy to Help You Plan for Your Retirement

December 26, 2023

When you are searching for missing things in your almirah or unopened drawer, you may have found something that you are not looking for but it may have put a smile on your face. Like an old mobile phone with a keypad or a calculator. And if it is in a working condition then? With new-age technology, we tend to forget a few things but one thing is the same, whether it is in an old phone, a new phone, or on the internet – The Calculator.

People who invest or save, calculate their savings and investment amount as well to get the estimated returns. If you are investing in the National Pension System (NPS) for your golden years you can take the help of the NPS calculator.

So, what is the NPS Calculator, and how it can help you, this is what we are going to find out in this blog.

What is the National Pension System calculator?

An NPS calculator is a tool that allows you to calculate the amount of pension you can expect to receive through the National Pension System (NPS) once you retire. It helps you plan for your retirement by giving you an idea of the benefits you can expect to get under the NPS.

The National Pension System calculator can help to get the estimated pension amount and your retirement corpus. It is an easy online tool that can help you to decide the investment amount for your retirement. Looking for a step-by-step guide for the National Pension System Calculator? Click here.

Now, you understand the NPS calculator. Let’s have a look at how it can help you in your investment and decision-making.

How can the NPS calculator help you?

Estimate the retirement benefits: You can estimate your potential retirement benefits based on your current age, your contribution amount, your expected return, and other factors.
Assess your retirement needs: With the NPS calculator, you can determine if your projected retirement benefits will be enough to cover your retirement needs and help you plan for a comfortable retirement.
Compare your future with the NPS calculator: You can use the NPS calculator to compare your future with different scenarios by changing variables. It will help you to see how these changes will affect your retirement benefits and you can adjust them accordingly.

To calculate your retirement corpus, click here.

Conclusion

People plan for retirement to know the pension amount, annuity corpus, investment horizon, expected rate of returns, etc. NPS calculator can be a useful tool if you are looking to get the answers about your retirement. If you’re unsure of how to plan for retirement, the National Pension System calculator can help you make an informed decision.

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Creating the Right Balance: National Pension System

December 21, 2023

While playing a game online, has this thought ever come across to you that ‘This game is not for me.’? Or when you are working on your laptop, sometimes it hangs or runs slow, then you think this laptop is not right for you. We ideally look to find out the right balance to achieve or accomplish anything in life. Now, when you search for the best retirement plan you may put a lot of effort into searching online and discussing it with your kith and kin. Every individual tends to look for the right balance.

What about a retirement plan that gives you the right balance between investment and returns? Yes, we are discussing the National Pension System. So, in this blog, we’ll discuss why you should invest in the National Pension System (NPS).

Retirement Plan: 5 Reasons to invest in National Pension System

Long-term Retirement Plan: National Pension System or National Pension Scheme provides every investor an opportunity to invest in a systematic and disciplined manner over the course of their employment years. It is considered one of the best retirement plans among individuals as it offers flexibility to invest in equity, government securities, and corporate bonds. NPS allows investors to balance their risk and long-term financial goals.
Regulated Retirement Plan: This is one of the prime reasons why NPS is considered a good option for retirement planning. NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) which ensures transparency and accountability of the pension funds.
Market-Linked Retirement Plan: There is a reason why NPS is considered the best investment for retirement. The National Pension System offers market-linked returns over a period of time. The portion of the corpus is invested in equities as it has the potential to provide higher returns than traditional retirement planning options.
Flexible Retirement Plan: NPS comes with flexibility options in terms of withdrawal. Investors can withdraw up to 60% of the accumulated corpus as a lump sum at the age of 60, and the remaining 40% is used to purchase an annuity that provides a regular income. NPS subscribers can also make partial withdrawals before the age of 60 in certain cases and emergencies, such as serious illness or the investor’s demise before the age of 60. Then the nominee would be eligible to take the withdrawal.
Tax-benefits Retirement Plan: An investor’s contributions to the National Pension System (NPS) are eligible for tax benefits under Section 80CCD (1) of the Income Tax Act and Section 80CCD (1B), respectively.

Are you willing to know more about tax implications and benefits related to NPS? Click here.

Conclusion

To recapitulate, NPS (National Pension Scheme) is one of the prominent, flexible, and investor-friendly retirement plans. But, it is crucial for every investor/subscriber to carefully analyze his/her financial goals. Before you choose any retirement plan you can take assistance or consult a financial advisor to make informed decisions.

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Unlocking Tax Benefits with the National Pension System (NPS)

December 6, 2023

“The best way to save money is not to lose it.” – Les Williams

Most of us save money by not contributing to unnecessary things, and that is the logical thing to do. However, there are more ways to save money as well, through more contributions towards your future and tax deductions.

When you make your financial plans, saving on taxes must be one of your top priorities along with investing in the National Pension System (NPS). And guess what, you can effectively use NPS for tax saving benefits.

Understanding the NPS Scheme

NPS is a voluntary, long-term retirement savings scheme for individuals from 18-70 years; which is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It is designed to provide financial security during your post-retirement years.

NPS offers two primary tiers – Tier 1 and Tier 2. While Tier 1 is a mandatory account meant for retirement savings, Tier 2 is a voluntary savings option that you can utilize according to your various financial goals.

Tax Saving in NPS

Section 80C: The contributions made towards the Tier 1 NPS account qualify for tax deductions available under Section 80C. The maximum limit for this deduction is ₹1.5 lakh per year.
Section 80CCD(1B): In addition to Section 80C, another significant advantage of investing in NPS for tax saving is the additional deduction offered under Section 80CCD(1B) of the Income Tax Act. NPS subscribers can claim an additional deduction of up to ₹50,000 over and above the limit of Section 80C on voluntary contributions. Mind you, this tax benefit is exclusive to NPS.
Employee Contribution: An employee can choose to invest up to 10% of his/her basic salary to NPS that is exempted from tax under 80CCD(2) with a limit of 5.5 lakhs in a year. This helps to minimize your tax liability.
Withdraw Tax-Free: After you retire, if you wish to withdraw a lump sum amount from your NPS corpus, you need to note that up to 60% lump sum withdrawal of the corpus is tax-free and spend the remaining 40% on annuities, you don’t pay tax at that point. Only the income you earn from annuities in the following years will be taxed based on your tax bracket.

What is the Tier 2 Tax Saver Scheme?

A new variation of the Tier 2 account was introduced by the government as the NPS Tier 2 Tax Saver Scheme in 2020. Even though a Tier 2 account doesn’t have as many tax-saving benefits as other NPS tax saving schemes and is not very popular, it still can be used for tax-saving by the employees of the central government. Investments in the Tier 2 account by central government employees with active Tier 1 accounts are eligible for deductions under Section 80C, similar to Tier 1. However, there is a lock-in period of 3 years for Tier 2 Tax Saver Scheme investments.

Conclusion

By investing wisely and taking advantage of the NPS tax saving schemes, you can secure your financial future while reducing your tax liability. Start tax saving in NPS here.

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Explore the Digital Advantage with NPS Registration Online

November 20, 2023

Imagine your boss has given you tons of work that you must complete in a day. And even though you have access to the internet, you refrain from using it because you feel working the traditional way is the best way of doing it and keeps your mind active. But as a result, you aren’t able to complete your work on time and this adds to your stress. Don’t you think taking digital help would have been the smart way?

Similarly, in this fast-paced digital era, financial planning has undergone a significant transformation. Now there’s a smarter and smoother way to save, invest, and achieve financial goals as well: that is through the digital space. One such area that has embraced this change is the National Pension System (NPS), with a shift towards NPS registration online.

Let’s see what the benefits of online NPS registration are that can help individuals in planning for their retirement.

User-Friendly Technology

Traditional methods of NPS registration involve unending paperwork and manual processes. However, through NPS registration online, the entire process has become streamlined and user-friendly for subscribers. Now you can complete your NPS registration from the comfort of your homes, removing all the need for physical visits.

Accessibility and Convenience

With just a few clicks, you can access the NPS registration portal online, fill in the required details, and submit the necessary documents. This creates convenience and accessibility for a wider audience.

Real-Time Updates and Tracking

One important advantage of NPS registration online is the ability to track the status of your application in real-time. You can receive instant updates on the progress of your investments, providing transparency, and reducing uncertainty.

Enhanced Security Measures

Encryption protocols and secure authentication methods help safeguard the personal and financial information of subscribers.

Interactive Tools and Resources

Interactive tools and resources like FAQs are used to guide applicants navigate the registration process with ease.

Conclusion

The advantage of NPS registration online represents a significant leap forward in your financial planning. As more subscribers start to recognize the benefits of NPS registration online, the financial landscape in retirement saving will continue to evolve. In conclusion, embracing the digital advantage of NPS registration online is not just a convenience; it’s a step towards a more efficient and accessible financial future for your golden years.

If you want to apply for NPS registration online, click here.

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Early Start is the Best Start: Consider NPS for a Financially Secure Life after Retirement

November 17, 2023

Childhood is all about living a care-free life. Do you remember those days when you didn’t have to think about your future? Children don’t need to plan or prepare for anything, and they live in the moment. But as we grow old, we start thinking about the future, career, goals, financial objectives, etc. We need to plan everything out. What if we plan today and live a care-free life in our golden years? Yes! This is possible. We will discuss the same in this blog.

Achieve financial stability with NPS

Have you heard the term NPS or National Pension System? NPS is becoming a popular investment choice amongst people to financially secure their retirement. And now, since everything is at our fingertips, we can open an NPS account online in just a few minutes. But, you must be wondering how to open an NPS account, or what are the steps involved? Let’s discuss this.

What to consider before opening an NPS account online?

The National Pension System, widely known as the National Pension Scheme, is a voluntary, long-term saving scheme which is designed to achieve post-retirement financial goals. There are certain parameters you need to take care of and let’s have a look at them one by one.

Eligibility: To open an NPS account you need to meet certain criteria. NPS is available to citizens of India whether they are employed or running a business. The age group to open an NPS account is from 18 to 70 years.

Select an NPS Service Provider: NPS is regulated by PFRDA (Pension Fund Regulatory and Development Authority) and managed by various pension fund managers. Choose a fund manager who is in line with your financial goals and investment preference.

Types of NPS Account: Tier I and Tier II. These are two types of NPS accounts. In a Tier I account, there is a lock-in period, and you can withdraw your investment at the age of 60 years. A withdrawal option is available in a Tier I account but with some restrictions. Whereas in the Tier II account, there are such restrictions, it is more of a voluntary savings account. Select your NPS account accordingly.

To read more about the Tier I and Tier II accounts, click here.

Online Registration: Visit nps.KFintech.com to choose your NPS service provider. Fill in the essential details accurately, such as personal information, contact details, etc., and complete your KYC.

Choose your investment preferences: You can set the investment amount as per your convenience. An NPS account offers a choice between active and auto choice. You can allocate your funds in active choice while in active mode. It involves automatic investment amount deduction.

Conclusion

Opening an NPS account is a simple and easy process that gives individuals an opportunity to save for their retirement. Consider these above-mentioned steps while opening an NPS account and embarking on a journey towards creating a financially secure future for your golden years. Do remember to stay informed about NPS more and review your investment strategy.

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Understanding NPS Calculator: Your GPS for Retirement Planning

November 3, 2023

Wherever you go on a long road trip with your family or friends, it’s usually your GPS that acts as a trustworthy member of your trip who can properly guide you through unfamiliar roads and territories. Your GPS ensures that you reach your destination with ease. Just like this, the National Pension System (NPS), also known as the National Pension Scheme, can be your guiding star for your retirement financial planning; while the NPS Calculator will be your most valuable tool to ensure a smooth journey to your retirement dreams.

Want to understand how the NPS Pension Calculator can be your essential companion in planning a secure and comfortable retirement? Then let’s navigate the inner workings of the NPS Calculator and how it can empower you to make informed decisions for your retirement planning.

Your NPS Journey Begins Here

The National Pension System is a voluntary, long-term retirement savings scheme introduced by the Government of India that you can invest in from 18-75 years. Anyone can voluntarily invest in the NPS scheme whether they are working in any type of employment, like a government job, corporate job, self-employment, or unorganized sector. However, for different types of employment, there are different types of NPS accounts: Government, Corporate, and Individual.

Like a well-prepared roadmap for your retirement, NPS is designed to provide financial security in your golden years. It’s a great initiative that can empower you to plan your retirement by contributing regularly during your working years. Your investment will eventually accumulate into a significant retirement corpus.

But how do you know if your NPS contributions are on the right track to meet your retirement goals? This is where the NPS Return Calculator comes into the picture. It will act as your financial compass to enable you to calculate, project, and optimize your NPS savings for a secure future.

Navigate Your Retirement with the NPS Calculator

Now imagine you’re driving through an unfamiliar road. You want to know how far you’ve come and how much farther you have to go. Just as the GPS keeps track of your journey, similarly, the National Pension System Calculator helps you to keep track of your retirement savings.

The NPS Calculator is a user-friendly online tool that takes your NPS contributions, expected returns, and other relevant parameters into account to estimate your retirement corpus. The NPS Pension Calculator will illustrate the tentative Pension and Lump Sum amount you may expect on maturity. It predicts these probable outcomes by taking into account the regular monthly contributions you provide, the percentage of the accumulated savings reinvested for purchasing an annuity, and the assumed rates associated with returns on investments and the chosen annuity option.

The NPS Calculator has great benefits when it comes to setting financial goals for your retirement, experimenting with different contribution amounts, and assessing how your investments are likely to grow over time.

Why is the NPS Calculator Crucial for NPS Planning?

With life expectancies increasing, it is important to take control of your financial future. Remember, your retirement journey, much like a road trip, should be filled with anticipation and excitement, not anxiety. For this purpose, NPS offers a structured and tax-efficient way to accumulate a substantial retirement corpus. The NPS Calculator is your financial GPS, which can provide the guidance you need to reach your retirement destination comfortably and securely.

Start your NPS journey here and reach your retirement destination stress-free!

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The Power of Multiple Pension Fund Managers in NPS

November 1, 2023

Imagine you are visiting a local cuisine marketplace, where you find a dazzling array of food choices and flavors for you to choose from. Won’t that make your experience much more rich and satisfying? Similarly, to make your investment experience rich and diverse, the National Pension System (NPS) is now offering a variety of choices for your retirement planning.

In the ever-evolving landscape of financial planning, the National Pension System (NPS) in India has introduced a unique concept – the ability to choose multiple Pension Fund Managers (PFM) for your retirement savings. This approach will provide individuals with more choices and flexibility to manage their retirement savings.

What is Changing?

Earlier, all NPS scheme subscribers had to choose only one PFM across all the asset classes. However, now subscribers can choose up to 3 PFM, one for each of the asset classes. This ensures that you get to choose the expert PFM for each of the asset classes, thereby improving the possibility of better returns. This latest update of the new pension scheme is available in Active Choice in Scheme Preference.

In the case of NPS Tier-I accounts, subscribers can select different PFM for different asset classes.

PFM 1 for Equity Scheme (E)
PFM 2 for Corporate Scheme (C)
PFM 3 Government Scheme (G)
For Scheme Alternate Investment (A), NPS subscribers can choose only one PFM out of the PFMs opted in asset classes E, C, and G.

In the case of NPS Tier-II accounts, subscribers can select another 3 different PFM.

PFM 4 for Equity Scheme (E)
PFM 5 for Corporate Scheme (C)
PFM 6 Government Scheme (G)

Benefits of having multiple PFMs in the NPS scheme

Diversification for Safer Returns

Multiple PFMs who are experts in each of their asset classes offer a range of investment options, allowing national pension system subscribers to diversify their retirement portfolios. This helps to reduce the risk concentration and potentially improve returns.

Tailored Choices for Every Investor

Subscribers can select a PFM that aligns with their risk tolerance, investment goals, and preferences. Different PFMs may excel in various asset classes, such as equities, bonds, or government securities. This will help them to design a better investment strategy.

Flexibility to Customise

Subscribers can switch between PFMs or investment schemes within the NPS scheme to adapt to changing financial circumstances or goals. This flexibility allows for better customization of retirement planning.

Performance Comparison

Multiple PFMs allow subscribers to compare the performance of their chosen PFM with others. This helps them to make data-driven investment choices and hold PFMs accountable for their performance.

Exit Options

In case an NPS subscriber is dissatisfied with the performance of their chosen PFM, they have the option to switch to another PFM, providing an exit strategy. This ensures satisfaction for them as their investments are in the hands of more capable PFMs.

Points to be noted

Selection of Multiple PFM in an NPS Tier-I account is applicable to subscribers mapped under the Corporate Sector and All Citizen of India (AL) excluding the State Government.
In the case of an NPS Tier-II account, it is applicable for all subscribers under any sector.
The Percentage Contribution cannot exceed 100%.
An NPS subscriber has the option to change the Pension Fund Manager. At present, the subscriber can change the Pension Fund Manager once in a Financial Year.
NPS subscribers can change their asset allocation four times during a financial year.

Conclusion

The introduction of Multiple Pension Fund Managers in India’s National Pension System is a game-changer for retirement planning. Overall, multiple PFMs in the new pension scheme aim to empower individuals with greater control over their retirement savings, enabling them to make choices that suit their financial goals and risk preferences.

To learn more about how you can choose PFMs within the National Pension System also know as National Pension Scheme, visit our dedicated NPS platform.

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A Guide To Things You Need For NPS Registration Online

October 30, 2023

Don’t you carry an umbrella with you whenever you go out to keep yourself prepared for unexpected rain? The National Pension System or the National Pension Scheme (NPS) is like carrying an umbrella even before it starts raining. NPS empowers its subscribers to take a proactive approach to retirement planning.

So don’t wait for the storm of retirement to arrive, prepare in advance through NPS registration online, ensuring that you’re financially protected when you need it the most.

You must have already heard of NPS. If not, you can read about the NPS scheme and its benefits here.

How to apply for NPS online?

For NPS online registration, you can visit the eNPS portal. Or you can enroll for eNPS registration through the website of KFin Technologies as well. Let’s see what you have to do to create an account for eNPS registration:

Step 1: Visit https://www.nps.kfintech.com/

Step 2: Click on ‘Join NPS’.

Step 3: You will be redirected to a new page.

Step 5: Enter the following details:

Your full name
Your date of birth
Mobile number
Your PAN number
Email ID
Application type
Resident type
Accept the terms and conditions
Click on ‘Create an account’, and then you will be redirected to the NPS page

Important things you need to fill for eNPS registration

Application Type: You’ll be presented with different account/application types. You have to choose the appropriate one based on your eligibility, whether you are an individual subscriber or a corporate subscriber.

Personal Details Entry: You have to fill in your personal details, which include your name, date of birth, PAN card details, contact information, nationality, occupation, and parental and spousal information. Be sure to provide accurate and up-to-date information.

KYC Verification: To comply with Know Your Customer (KYC) norms, you may need to upload your photograph and signature. Ensure you have your Aadhaar and PAN card for verification.

Account Type: You have to choose either ‘Tier I’ or ‘Tier I & Tier II’. Tier I is a mandatory pension account and restricted withdrawals are allowed as per rules and regulations. The minimum contribution to open this account type is 500 INR. Under Tier I, multiple tax benefits are available. On the other hand, Tier II is an optional investment account and there are no restrictions on withdrawals. The minimum contribution to open is Rs. 1000 INR and there are no tax benefits.

Contribution Details: You will need to decide how much you want to contribute to your NPS account regularly. This can be changed later, but it’s important that you make an informed decision based on your current financial situation.

Nomination Details: You will need to nominate beneficiaries for your NPS account. Ensure you provide accurate information about your nominees, as this will be crucial for your loved ones in case of unforeseen circumstances.

Choosing Pension Fund Manager (PFM): During the registration, you will have the opportunity to choose PFM from the options available. You can now choose multiple PFMs, one each for every asset class. Research and select the PFM that aligns with your financial goals and risk tolerance.

Confirmation and PRAN Generation: You will receive a Permanent Retirement Account Number (PRAN) after everything is complete with a unique 16-digit number. This is your key to accessing your NPS account whenever you log in. Keep it safe with you.

Conclusion

NPS registration online through the eNPS portal offers a hassle-free way to secure your financial future. By keeping these key things in mind, it will be easier for you to take the first significant step towards building a comfortable retirement. Don’t delay; enroll for eNPS registration here and enjoy the benefits in your golden years.

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