A new National Pension System (NPS) balance lifecycle scheme is set to launch between July and August, Pension Fund Regulatory and Development Authority (PFRDA) chairman Deepak Mohanty was quoted as saying in a Moneycontrol report.This initiative aims to balance risks and returns effectively.Mohanty detailed that the scheme will allocate 50% of investments to debt and 50% to equity, with adjustments based on age.The proportion of debt investments will increase for individuals over 45 years old.This will provide a more secure investment approach as they age.Existing NPS subscribers will have the option to switch to this new scheme, the report said.Notably, NPS is a government-sponsored retirement savings scheme in India, regulated by the Pension Fund Regulatory and Development Authority (PFRDA).It was launched in 2004 and aims to provide pension benefits to individuals after retirement.It allows individuals to contribute regularly towards their retirement savings during their working life.It is open to employees from the public, private, and unorganised sectors.Subscribers can choose their contribution amount and frequency.
They can also opt for systematic investment plans (SIPs) similar to mutual funds.Contributions made towards NPS are eligible for tax deductions under Section 80CCD(1) of the Income Tax Act, up to a limit of ₹1.5 lakh per financial year.Additionally, an exclusive tax benefit of up to ₹50,000 is available under Section 80CCD(1B).NPS offers two types of accounts – Tier-I (mandatory for contributions and withdrawal restrictions) and Tier-II (optional, with more flexible withdrawal options).Subscribers can choose from various investment options – Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investment Funds (AIFs) – based on their risk appetite.
A new National Pension System (NPS) balance lifecycle scheme is set to launch between July and August, Pension Fund Regulatory and Development Authority (PFRDA) chairman Deepak Mohanty was quoted as saying in a Moneycontrol report.This initiative aims to balance risks and returns effectively.Mohanty detailed that the scheme will allocate 50% of investments to debt and 50% to equity, with adjustments based on age.The proportion of debt investments will increase for individuals over 45 years old.This will provide a more secure investment approach as they age.Existing NPS subscribers will have the option to switch to this new scheme, the report said.Notably, NPS is a government-sponsored retirement savings scheme in India, regulated by the Pension Fund Regulatory and Development Authority (PFRDA).It was launched in 2004 and aims to provide pension benefits to individuals after retirement.It allows individuals to contribute regularly towards their retirement savings during their working life.It is open to employees from the public, private, and unorganised sectors.Subscribers can choose their contribution amount and frequency. They can also opt for systematic investment plans (SIPs) similar to mutual funds.Contributions made towards NPS are eligible for tax deductions under Section 80CCD(1) of the Income Tax Act, up to a limit of ₹1.5 lakh per financial year.Additionally, an exclusive tax benefit of up to ₹50,000 is available under Section 80CCD(1B).NPS offers two types of accounts – Tier-I (mandatory for contributions and withdrawal restrictions) and Tier-II (optional, with more flexible withdrawal options).Subscribers can choose from various investment options – Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investment Funds (AIFs) – based on their risk appetite.
