If you are between 18 and 60 yrs, you can get a Permanent Retirement Account Number from entities like SBI, UTI, ICICI Bank and Axis Bank Minimum annual contribution Rs 6,000. Fees much lower than those charged for pension plans sold by insurance companies Choose fund manager from 8 players. More players can come in now with up to 26% foreign investment allowed. At least one fund manager to be from public sector You can choose from a mix of equity, debt and gilts. Now, the govt has agreed to a new scheme that will offer minimum assured return NPS gives you flexibility of changing fund manager, investment mix annually At 60, you can withdraw up to 60% of corpus but need to use at least 40% to buy annuities that will earn a monthly pension No tax will be levied if entire corpus is used to buy annuities. The biggest Negative is that your money would remain locked till retirement and hence it would be wise to judge your requirements before subscribing for NPS.
Posted on: Fri, 27 Sep 2013 04:28:25 +0000