The aim was to promote retirement planning for a stress-free and azad retired life.
The way to encourage citizens to take on retirement planning as soon as possible is by creating awareness about the benefits of investing in a reliable pension scheme.
"Over a 13-year period, we have given a compounded annual growth of more than 10 per cent -- 10.27 per cent to be precise. Always, we have given investors inflation-protected returns,” stated Supratim Bandyopadhyay, Chairperson at PFRDA.
Plus, they have the freedom to defer annuity purchases up to the age of 75. Account holders can also choose to exit the scheme prematurely, after 5 years of joining, while the investment choice can be revised up to 4 times within a financial year.
Some key benefits offered by NPS are :
Simplicity : It is incredibly easy to open an account and receive a Permanent Retirement Account Number (PRAN). The entire process is digital. This unique number will stay with the account holder in their lifetime.
Flexibility : There are various investment options and pension funds to choose from. Plus, investors have the freedom to switch from one investment option to another or one fund manager to another.
Portability : With the NPS, you get seamless portability when you change jobs or locations, with hassle-free transfer of the scheme to the new job/location.
Power of compounding : This feature allows for wealth creation as each successive interest payment is made on the total funds in the account, rather than only on the initial investment capital.
Online access : It is easy to open and manage an account through the online portal. Account holders can also make their contributions to the scheme online..
Source : Economic Times
