Do your job at the beginning of the job, after your job, put your money in NPS

Do your job at the beginning of the job, after your job, put your money in NPS.

Today, the large population of India is young, but according to an estimate, this figure will change after 2040, and after that, the people of the age-dragged population will start growing. The sooner the planning is started for retirement expenses and social security, the results are so much better. After retirement, it is very important to have sufficient cash flow. Only then will you be able to fulfill all your needs without depending on the other. A better alternative to getting a pension after retirement is the National Pension System ie NPS. The Central Government started it for government employees in 2004 and in 2009 it was opened to the general public too.

NPS is 100% tax-free and has good returns, flexibility and tax benefits with its main advantage. People from 18 to 60 years can open an account of NPS. NPS account can be opened online or offline. If you are between 20-35 years old then the NPS is a good option. You have to go to a bank or post office for this. You can also apply online for the eNPS platform.

NPS accounts are of 2 types - Tier 1 and Tier 2. The tier-1 account is required to be opened. Only then can you open a Tier-II account. Tier 1 is a pension account which is compulsory and out of which money is not allowed, but Tier 2 is a voluntary savings account where the subscribers can withdraw money whenever they wish.

It is necessary to deposit at least Rs.1000 per year in the Tier-1 account of NPS. You can also open a Tier-2 account with no minimum balance, so you can withdraw money whenever you want. This is the cheapest option because you have to pay just 0.1% as a fund management charge.

You have 2 options for investing in NPS - Active Choice and Auto Choice Under Active Choice you can invest in Asset Class Equity, Government Securities and Fixed Income Instruments, Government Security and Alternative Investment Schemes. You can invest up to 50% in equity. In auto choice, you are invested in various asset classes according to your age.