Create a Financially Secure Future, Open an NPS Account

We live in a digital and fast-paced era where financial planning has become a necessity for every individual. Financial security has become a top priority. One of the effective ways to plan your retirement is by opening a National Pension System (NPS) account. Numerous benefits are associated with NPS and also opening an NPS account is easy and less time-consuming.

In this blog, we’ll explore the benefits of NPS along with the step-by-step process for NPS registration.

Understanding the National Pension System (NPS)

The National Pension System is a voluntary retirement savings scheme and it is regulated by PFRDA (Pension Fund Regulatory and Development Authority). The primary objective of NPS is to provide financial security during your retirement years.

There are many advantages of NPS such as flexible investment options, and diversification which gives you the freedom to invest in equities, corporate bonds, government securities, and alternative investments. It allows you to tailor your portfolio according to your risk appetite and financial goals.

Benefits of NPS

1. Flexibility: When you invest in NPS, you have two investment options to choose from: active mode or auto mode. In active mode, you can select the allocation of your fund across asset classes. On the other hand, auto choice allocates your fund based on your age as it slowly shifts to lesser risk investment as you close to retirement.
2. Low-cost investment: NPS is known for its affordable retirement investment scheme. You can open an NPS tier 1 account with ₹500 to keep the account active you must deposit ₹1000 yearly. This makes NPS one of the lowest retirement investment schemes.
3. Tax benefits: The National Pension Scheme comes with various tax benefits. Your contributions made towards NPS are eligible for tax benefits under Section 80CCD(1) of the Income Tax Act. Moreover, there is an additional benefit of ₹50,000 under the Section 80CCD(1B).

How to open an NPS account online

Opening an NPS account online is an easy and hassle-free process. You can follow these steps:

1. Log onto a trusted eNPS portal: The first would be visiting a trusted eNPS portal online. You can open it through your laptop or mobile.
2. Register: The next step is to register yourself as a new ‘Subscriber’. This needs your details such as PAN card, Aadhaar Number, and other personal information. 
3. Generate PRAN: After you successfully register yourself, you will receive a Permanent Retirement Account Number (PRAN). It is important to access your account online.
4. Contribute: Once your NPS account is activated, you can start contributing to it.
5. Monitor your investments: You can monitor your investments online regularly, track your portfolio performance, view transaction history, allocate your assets, and make changes as per your financial goals.

Conclusion

Opening an NPS account can be an easy way to start your retirement planning journey. With its tax benefits, flexibility, and affordability, NPS offers worry-free financial cover in your golden days. Take advantage of the eNPS portal and you can experience a financially secure retirement.