How to invest for retirement How to invest for retirement is a question that rings in everyone’s minds almost eternally. You read and hear about options such as mutual fund SIPs, equity, and NPS, but are confused on, which is the best one for you. Well! The answer lies in ‘financial planning’, which is the best way and often the first step to start investing towards a secure retired life. Financial planning enables you to create financial objectives, which makes it much easier for you for deciding on investment choices, since you will know your risk profile and time horizon well. Earlier you start the better. Remember what our grandparents told us. It’s the early bird that catches the worm. One of the most important objectives after retirement for everyone is having a regular flow of income coupled with a tension-free life. Thus, you would need to search for investment options that not only save you money in terms of cost, but also deliver more returns than expected, especially after your retirement. The best asset class that does that is the National Pension Scheme (NPS).
As an investment option for retirement, NPS is – · Easily accessible · Low cost · Tax-efficient · Flexible · With a portable retirement savings account
Subscribers of NPS can make regular contributions into their pension account during the full course of their working life. Moreover, subscribers can invest in NPS online. NPS allows subscribers to, on retirement, to withdraw a portion of their accumulated corpus in a lumpsum. The remaining corpus can be used by the subscribers to purchase an annuity. This will be highly beneficial for them in terms of securing a regular flow of income after retirement. Thus, investing NPS, the best pension scheme in India, is the perfect way to lead a peaceful retired life with regular income flow.
Investors can start a NPS account with a minimum annual contribution of Rs. 1000. Moreover, investors can take advantage of the additional benefit of Rs. 50,000 u/s 80CCD(1B). The fact that PFRDA regulates NPS adds credibility and value to the investment scheme. Features such as transparent investment norms, regular monitoring, and constant performance review of NPS fund managers make NPS a good investment option for securing your retirement. In case an investor opts for equity, NPS provides marketlinked returns, which will help in beating inflation. The fact that the returns from NPS are cost-adjusted creates a lot of long-term benefits for its subscribers. NPS allows investors the flexibility to make a choice between Active Choice or Auto Choice as investment options. Remember that early contributions into NPS will benefit you through the compounding effect, which will lead to maximization of returns for your retirement. For more information on NPS and other investment asset classes, give us a missed call on +91–22–28583333 or visit us at www.investmentz.com