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History is witness to how women have continuously broken down barriers and expanded their roles in society. They’ve transitioned from being primarily caregivers and homemakers to becoming influential figures in the public workforce. As more women take on the role of breadwinners, they also recognize the importance of retirement planning to secure their financial future, resulting in a positive shift towards financial empowerment. There’s still a noticeable gap between men and women when it comes to planning for their golden years.
According to the latest PFRDA (Pension Fund Regulatory and Development Authority) data as of March 2023, only 22 percent of corporate NPS Scheme subscribers are women. This data signifies the urgent requirement to raise awareness among women about the National Pension scheme and motivate them towards retirement planning.
Why women don’t prioritize retirement planning?
The financial challenges for women do not end at the wage gap, they face many other (probably hidden) challenges on top of this which may be the reason why women do not prioritize retirement planning. Some of these challenges are:
- Being dependent on their parents or spouses for financial support.
- Tend to choose convenient jobs over higher-paying ones for work-family balance.
- More likely to take a career break due to family reasons.
- Usually shy away from taking charge of their finances and are conservative in taking expert financial help.
Whatever the financial challenges, with the rapidly changing financial dynamics, women now have an opportunity to focus on their retirement savings. With the NPS scheme, they can contribute to a more secure and comfortable retirement.
Benefits of the National Pension System for Women:
- Flexibility in Contribution: The NPS scheme offers flexible contributions, suitable for women with varying income levels. It also gives the option to choose how much to invest and when to accommodate career interruptions.
- Online Advantage: It’s easy to operate an account for the NPS scheme online from anywhere and at any time; helping during work or residential changes.
- Tax Benefits: The National Pension System, also known as the National Pension Scheme contributes to tax deductions which can boost retirement savings over time.
- Nomination Facility: This ensures that subscribers’ loved ones are financially secure by nominating beneficiaries for their NPS scheme account.
- NPS for Homemakers: Opening an NPS account in the name of homemakers helps to ensure a secure future during their old age.
- Varied Investment Options: The NPS scheme allows subscribers to select between equity, corporate debts, government bonds, and alternate investment funds (AIF) to adjust to their risk tolerance.
- Regular Monitoring: Easy to stay informed about the performance of an NPS scheme account which helps to make adjustments as needed to meet the specific retirement goals.
Conclusion
The NPS Scheme offers women a reliable and flexible means to build a secure retirement fund. By understanding and leveraging the benefits of the new pension scheme, women can take significant strides towards achieving financial independence and enjoying their retirement years to the fullest. Remember, it’s always early enough to start planning for a financially secure future.
To learn more about how you can plan your retirement with the NPS Scheme and open an account, visit our dedicated NPS platform.
