The government has changed a big rule related to withdrawal of money from the National Pension System. This will benefit millions of people.
NPS means National Pension System is a popular option of saving in the country today. On 1 May 2009 it has also been started for employees working in private sector or un-organized sector. Seeing its benefit, a total of 2 crore subscribers are associated with it. Basically it is a pension saving scheme that provides financial security in future. The question arises that how can you plan for a monthly pension of 60 thousand rupees through NPS. Let us tell you that the government has made changes in a big rule related to this.
The rule of NPS has changed – the old pensioners of the National Pension System i.e. NPS, who have left before this time, can join it again. PFRDA has given its permission. According to the current rules, subscribers can opt out of it before the completion of 60 years of age. Investing in NPS matures 80% of the regular pension to the investor, while the remaining 20% can be withdrawn outright. Now those who had withdrawn 20 percent of the money, if they want to join the NPS again, then they have to deposit this amount. Apart from this, they can complete the withdrawal pension process by taking regular pension. After this, they can open a new NPS account.
NPS: Changes in the rules of premature exit- PFRDA gave these subscribers an option National Pension System: The National Pension System (NPS) gives its subscribers an opportunity to retire at a lower cost through pension funds. The benefits of NPS include portability, flexibility, various easy means to distribute contribution, option of pension fund, priority of scheme, exclusive tax benefits etc.
What is PRAN, what will happen now – Under NPS, subscribers are given Permanent Retirement Account Number (PRAN). Which is unique. Subscribers can have an active PRAN at one time and hence they can open a new account after closing their existing NPS account. Under the NPS, the subscriber can choose premature exit (withdrawing money before the age of 60), or upon receiving the final exit or superannuation at the age of 60, or at any later time according to the regulation.
In case of premature exit, up to 20% of the pension corpus deposited in PRAN can be withdrawn as a lump sum and the balance (80% or more) is used to purchase the Annuity plan from the Annuity Service Provider (ASP) as reported by PFRDA Will go. At the same time, now the regulator said that nowadays PFRDA is getting a lot of requests from the subscribers who have withdrawn their lump sum amount but have not taken the annuity till now and those subscribers have decided to continue the NPS account after that.
What to do for this – Open a new NPS account with a new PRAN, if they are eligible to join the NPS. Continue with the same PRAN in the NPS for which the previously withdrawn amount (up to 20 per cent) is deposited again into your NPS account (PRAN). To continue the existing PRAN, the option to double deposit can be availed once and the amount has to be deposited in lump sum.
Who can join NPS – Any salaried person between the age of 18 to 60 can join NPS . There are two types of accounts in NPS: Tier-I and Tier-II. Tier-I is a retirement account, which is mandatory for every government employee to open. At the same time, Tier-II is a voluntary account, in which any salaried person can start an investment on his behalf and withdraw money at any time.
How to get 60 thousand monthly pension – If you join the age of 25 in the scheme, then till the age of 60, for 35 years, you will have to deposit 5000 rupees every month under the scheme. The total investment made by you will be 21 lakh rupees. If the estimated return on total investment in NPS is 8 per cent, then the total corpus will be Rs 1.15 crore. Out of this, if you buy an annuity with 80 percent amount, then that value will be around 93 lakh rupees. The lump sum value will also be close to Rs 23 lakh. If the annuity rate is 8 percent, after the age of 60, a pension of 61 thousand rupees will be made every month. Also, a separate fund of Rs 23 lakh.