Latest news with #PensionFundRegulatoryandDevelopmentAuthority
News18
7 days ago
- Business
- News18
An Overview of the NPS Scheme and Its Long-Term Retirement Benefits
PNNNew Delhi [India], August 7: Retirement planning is one of the most significant steps toward financial security. The sooner you plan, the better it is to create a secure future. One of the most popular options in India for retirement planning in the long run is the NPS scheme or National Pension a retirement savings scheme sponsored by the government meant to assist you in developing a financial buffer for your retirement. Let's see how it operates and why it's so Is the NPS Scheme?The NPS scheme is an optional, long-term savings plan in which you can contribute regularly over your working life. Your contributions are invested in a combination of equities, government bonds, and corporate bonds to build your retirement the time of retirement, you can avail of part of the savings as a lump sum and apply the remaining for the purchase of an annuity, which gives a monthly scheme is governed by the Pension Fund Regulatory and Development Authority (PFRDA) and hence is a safe, transparent Can Participate in the NPS?* Any Indian citizen (resident or non-resident) aged 18 to 70 years can join.* Both salaried and self-employed individuals are qualified.* It's also offered to government workers as part of their retirement is easy to open an NPS account and can be done online or directly through authorised post offices and of NPS AccountsThe NPS scheme provides two types of accounts:Tier I Account* This is the primary retirement account with tax advantages.* Partial withdrawals are permitted only in certain circumstances.* It is compulsory to hold this account up to the age of II Account* This is a savings account that is attached to Tier I.* You can withdraw funds at any time without any limitations.* It does not provide tax advantages like Tier Does the NPS Work?Your money is invested in various asset classes when you contribute to the NPS scheme:* Equity (E): Greater return but higher risk* Corporate Bonds (C): Moderate return and risk* Government Securities (G): Low risk, stable returnsYou can choose:* Active Choice: Decide the amount to be invested in each asset class* Auto Choice: The System will automatically change the allocation as per your ageThis balanced strategy helps your money grow consistently while controlling risks over Retirement Benefits of NPS* Creates a Retirement CorpusPeriodic contributions spread over several years can lead to a substantial amount of savings for your retirement requirements.* Monthly Pension for LifeA part of your NPS savings goes to purchasing an annuity plan that pays you a monthly pension during retirement.* Flexible and PortableYou can keep the same NPS account even after switching jobs, locations, or industries.* Cost-Effective InvestmentNPS has one of the lowest charges for fund management among all retirement Benefits* Contributions of up to ₹1.5 lakh qualify for deduction under Section 80C.* Another ₹50,000 exemption is provided under Section 80CCD(1B).* A portion of the maturity value is also exempt from Choose NPS for Retirement Planning?Unlike fixed deposits or basic savings accounts, the NPS plan offers market-linked growth along with long-term safety. It's best suited for:* Young working professionals seeking to begin retirement planning early* Salaried persons searching for additional tax relief* Self-employed persons lacking employer-sponsored pension schemesBy paying a small amount on a regular basis, it is possible to create a huge retirement fund in the long NPS scheme is a cost-effective and pragmatic means of making provisions for a secure retirement financially. It provides market-linked returns, tax benefits, flexibility, and a guaranteed monthly pension upon you're serious about building a worry-free future, starting an NPS account early in your career can make a huge difference. With disciplined contributions and the power of compounding, your retirement years can be truly stress-free.(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
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Business Standard
06-08-2025
- Business
- Business Standard
New website makes work easier for NPS users: Here's how revamp helps them
Portal simplifies navigation and improves search function for locating circulars and schemes New Delhi The Pension Fund Regulatory and Development Authority (PFRDA) has revamped its website, to make it easier for National Pension System (NPS) subscribers to use searching for documents or tracking their funds. What's new for NPS subscribers? Whether you're joining the NPS for the first time or are already a subscriber, the new website brings several enhancements aimed at improving usability. Key features include: 1. Simplified navigation with dynamic layouts and centralised access to key services 2. Faster tools access such as NPS enrolment and calculator links right on the homepage 4. Better search function to locate circulars, forms, and scheme details easily How to join NPS via the new website You can now begin your NPS journey in just a few clicks. Here's how: 1. Visit 2. Click on 'Join NPS' from the 'quick link' section on the homepage 3. You'll be sent to an external site. Click continue for it 4. Choose a Points of Presence among the options 5. Click continue to open the registration page the online registration, upload documents, and make your first contribution How to use the NPS calculator To estimate your retirement corpus and monthly pension: to the homepage of the new PFRDA site on NPS calculator under Quick links details such as your age, monthly contribution the projected corpus at retirement and the potential annuity payout Why this matters With a growing number of Indians turning to NPS for building a retirement corpus, the new PFRDA website makes essential tools and services more accessible. For users across cities and towns, especially those less familiar with digital platforms, the simplified interface could remove key hurdles in engaging with pension products. PFRDA aims to use this platform as a centralised hub for all pension-related information, regulatory updates, and public engagement.
Mint
14-07-2025
- Business
- Mint
India Pension Funds Said to Request Easier Bond Investment Rules
(Bloomberg) -- Indian pension managers have asked the industry regulator to ease rules that mandate the tenor of company bonds they can buy, according to people familiar with the matter. The retirement funds recently asked the Pension Fund Regulatory and Development Authority to relax a cap on purchases of corporate bonds that mature in less than three years, the people said, asking not to be named discussing private matters. They also requested permission to buy company debt rated by only one credit assessor, the people said. The requests were made by the Association of NPS Intermediaries, the industry body, at a recent meeting. They underscore the growing need for flexibility as managers aim to maximize returns on a growing pool of household savings. These assets tripled over the last five years, fueled by India's economic growth and rising investor participation in the financial system. Currently, investment in corporate bonds maturing in less than three years is capped at 10%, with most securities needing ratings from at least two credit agencies, according to a March 2025 circular by the pension regulator. Since the pandemic, the assets with the National Pension System have more than tripled to 14.4 trillion rupees ($168 billion), according to data on the platform's website. That has led to greater purchases of government bonds, prompting the central bank to introduce a category tracking the sector's ownership of sovereign debt in 2023. The share of corporate bonds, however, has waned, dropping to 23.7% in the year ended March 2024, from 27.2% in the previous year, the data show. A spokesperson for the Pension Fund Regulatory and Development Authority didn't reply to a request for comment. The request to relax the 10% maturity norm would provide another investment opportunity for the growing industry. While bonds issued by financial sector companies meet dual-rating requirements, manufacturing firms often opt for single ratings to save costs, limiting pension funds' ability to invest in them. To be sure, investments in papers rated by just one agency could potentially dilute the credit quality of retirement fund portfolios. Meanwhile, increased investment in shorter-maturity bonds could pose challenges for retirement funds in deploying the proceeds from those securities at a desirable rate of interest. Over the past few months, long-term investors such as insurance funds have asked Indian regulators for more access to the country's financial markets. Some of these requests, such as permission to expand hedging tools and the introduction of new types of debt securities, have been granted, reflecting the growing heft of these players. More stories like this are available on
Time of India
14-07-2025
- Business
- Time of India
India's pension managers want to bend bond rules to chase yield on your retirement savings
Indian pension managers have asked the industry regulator to ease rules that mandate the tenor of company bonds they can buy, according to people familiar with the matter. The retirement funds recently asked the Pension Fund Regulatory and Development Authority to relax a cap on purchases of corporate bonds that mature in less than three years, the people said, asking not to be named discussing private matters. They also requested permission to buy company debt rated by only one credit assessor, the people said. The requests were made by the Association of NPS Intermediaries, the industry body, at a recent meeting. They underscore the growing need for flexibility as managers aim to maximize returns on a growing pool of household savings. These assets tripled over the last five years, fueled by India's economic growth and rising investor participation in the financial system. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like These Photos Captured the Exact Wrong Moment Read More Undo Bloomberg Currently, investment in corporate bonds maturing in less than three years is capped at 10%, with most securities needing ratings from at least two credit agencies, according to a March 2025 circular by the pension regulator. Live Events Since the pandemic, the assets with the National Pension System have more than tripled to 14.4 trillion rupees ($168 billion), according to data on the platform's website. That has led to greater purchases of government bonds, prompting the central bank to introduce a category tracking the sector's ownership of sovereign debt in 2023. The share of corporate bonds, however, has waned, dropping to 23.7% in the year ended March 2024, from 27.2% in the previous year, the data show. A spokesperson for the Pension Fund Regulatory and Development Authority didn't reply to a request for comment. The request to relax the 10% maturity norm would provide another investment opportunity for the growing industry. While bonds issued by financial sector companies meet dual-rating requirements, manufacturing firms often opt for single ratings to save costs, limiting pension funds' ability to invest in them. To be sure, investments in papers rated by just one agency could potentially dilute the credit quality of retirement fund portfolios . Meanwhile, increased investment in shorter-maturity bonds could pose challenges for retirement funds in deploying the proceeds from those securities at a desirable rate of interest. Over the past few months, long-term investors such as insurance funds have asked Indian regulators for more access to the country's financial markets. Some of these requests, such as permission to expand hedging tools and the introduction of new types of debt securities, have been granted, reflecting the growing heft of these players.
The Print
04-07-2025
- Business
- The Print
Govt employees under Unified Pension Scheme to get tax benefit akin to NPS: Finmin
'The government has decided that tax benefits as available under NPS would apply mutatis mutandis to UPS as it is an option under NPS,' it said. The inclusion of UPS under the tax framework marks another step forward in the government's effort to strengthen retirement security for central government employees through transparent, flexible and tax-efficient options, the finance ministry said in a statement. New Delhi, Jul 4 (PTI) In a bid to promote Unified Pension Scheme, the government has made necessary changes to provide tax benefits to employees opting for UPS at par with those under National Pension System (NPS). These provisions ensure parity with the existing NPS structure and provide substantial tax relief and incentives to employees opting for the UPS. The finance ministry through a notification dated January 24, 2025 had notified introduction of the UPS as an option under NPS for the recruits to the central government civil service with effect from April 1, 2025, giving one-time option to the employees covered under NPS for inclusion under the UPS. To operationalise this framework, the Pension Fund Regulatory and Development Authority (PFRDA) notified the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 on 19th March 2025, it said. UPS is applicable to the central government employees who are covered under the NPS and who choose this option under the NPS, which came into effect on January 1, 2004. The option can be exercised by 23 lakh government employees. On August 24, 2024, the Union Cabinet, chaired by Prime Minister Narendra Modi approved the UPS. Under the old pension scheme (OPS) which has been discontinued since January 2004, employees used to get 50 per cent of their last drawn basic pay as pension. PTI DP HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
