Investing in NPS: Your Retirement Plan
The National Pension System (NPS) is a smart way to secure your retirement. It's a voluntary defined contribution scheme designed for market-based returns in the long run.
Prerequisites
To get started, you must be an Indian citizen aged between 18 and 70 years old. If you meet this requirement, you're eligible to open an NPS account.
Modes of Opening
You have two options to open your NPS account. Visit a Point of Presence Service Provider (PoP-SP) like banks or financial institutions, or choose the convenient online method.
Physical Application
If you prefer the physical application, fill the PRAN application form with your photograph, signature, and scheme preferences. Submit KYC documentation to your chosen PoP-SP. Your PRAN will be sent to your correspondence address. Start with a minimum contribution of Rs. 500.
Online Application
For a faster approach, visit the eNPS website (https://enps.nsdl.com). Use your PAN and bank details. Fill in the required information and upload KYC verification documents like Aadhaar. Complete KYC via Aadhaar OTP authentication. Your PRAN will be sent to your registered email.
Investment Choice
When it comes to investment, you have two choices. 'Auto' allocates investments based on your age, while 'active' choice lets you decide the percentage allocation among different asset classes.
Start Building Your Retirement Fund
Now that you've successfully opened your NPS account and chosen your investment strategy, it's time to start contributing regularly to build a secure retirement fund.
Enjoy a Secure Retirement
By following these steps and consistently investing in your NPS account, you'll be better prepared to enjoy a financially secure retirement.