Plz explain new pension system

1. 

   krishna
   

   new member
   Joined: Jun '09
   Posts: 4

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   Can somebody explain what is new pension system. Is it good for private sector professionals.

   Posted 2 years ago #
2. 

   Pooja
   

   member
   Joined: Jun '09
   Posts: 24

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   New pension system (NPS) is launched by Govt. of India to provide the following things:-
   1. old age income
   2. reasonable market based return

   Earlier NPS was offered only to central government employees. NPS gave them 15% return in 2007-2008. Now govt has opened the NPS for general public.

   The NPS is fruitful because of 2 reasons:-
   1. The savings deposited by people are invested in share market, govt. securities and bonds.
   2. The charges are extremely low at .0009%. Hence the people get good return

   Other pension schemes like Insurance companies pension plans, Provident funds etc. are expected to have a very tough competition from New pension system.

   Posted 2 years ago #
3. 

   rahulkedia
   

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   Joined: Jun '09
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   New Pension Scheme is compulsory for all government employees joining on or after 1st jan 2004 and now it is open for everyone., whether organized or unorganized sector or non- government company. Its a a very good plan for private sector.

   Posted 2 years ago #
4. 

   rajkumar
   

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   Joined: Jun '09
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   Its good to see this scheme where charges are quite low & the return is around 14% but please explain me how they will allocate my savings ?

   Posted 2 years ago #
5. 

   Pooja
   

   member
   Joined: Jun '09
   Posts: 24

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   Saving would be invested according to once age :

   age < 35 years ( 1/2 of investment in equities, 1/5 in central government bonds & rest in corporate bonds or Fixed deposit)
   age 35-60 years (30%-40% in equity and remaining in government securities).
   age >= 60 years ( 1/10 in equities, 1/10 in corporate bonds & remaining 80% in central or state government bonds)

   Hence, In NPS scheme, maximum 50% of your savings will be invested in share market, if the investor is ready for high risk.

   Posted 2 years ago #
6. 

   ramlal
   

   junior member
   Joined: Jun '09
   Posts: 5

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   I found this plan more safe as it is regulated by government authorities, but interested in knowing its taxation benefits. Is this plan similar with other pension plan?

   Posted 2 years ago #
7. 

   devanand
   

   senior admin
   Joined: Jun '09
   Posts: 94

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   NPS taxation scheme

   At any time before 60 years of age- If the investor wants to withdraw his money 20% of the wealth is not taxable & remaining 80% is taxable if withdrawn in lump sum. In order to get tax benefit of 80% he/she needs to purchase a life annuity from any life insurance company.

   From 60 - 70 years of age-If investor wants to withdraw lump sum money his 60% wealth is not taxable and remaining 40% is taxable. In order to save tax in 40% investor has to purchase a life annuity from any insurance company.

   Death due to any cause- In such a case option is available to the nominee to receive 100% NPS pension wealth in lump sum

   IBS

   Posted 2 years ago #
8. 

   Anonymous
   

   Unregistered
   
   Posts: 8

   Reputation:8

    

   If is it any insurance policy for retired person having low pension?

   Posted 1 week ago #

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