National Pension System - All Citizen Model
- National Pension System (NPS) is a voluntary retirement savings scheme laid out to allow the subscribers to make defined contribution towards planned savings thereby securing the future in the form of Pension. It is an attempt towards a sustainable solution to the problem of providing adequate retirement income to every citizen of India.
- At the time of normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme to purchase a life annuity from a PFRDA empaneled life insurance company apart from withdrawing a part of the accumulated pension wealth as lump-sum, if they choose so. PFRDA is the nodal agency for implementation and monitoring of NPS.
Who can open a NPS account under All Citizen Model
- A citizen of India, whether resident or non-resident, subject to the following conditions:
- Applicant should be between 18 – 70 years of age as on the date of submission of his/her application and should comply with KYC norms prescribed.
Benefits of NPS Account
- Low Cost
- Simple
- Flexible
- Portable
NPS is considered to be the world’s lowest cost pension scheme. Administrative charges and fund management fee are also lowest.
All applicant has to do is to open an account with any one of the POPs being run through all Head Posts Offices across india and get a Permanent Retirement Account Number(PRAN)
Applicant can choose his/her own investment option and Pension Fund or select Auto choice to get better returns.
Applicant can operate an account from anywhere in the country and can pay contributions through any of the POP-SPs irrespective of the POP-SP branch with whom the applicant is registered, even if he/she changes his/her city, job etc and also make contribution through eNPS. The account can be shifted to any other sector like Government Sector, Corporate Model in case the subscriber gets the employment.
