NPS as Retirement Solution – Pros & Cons ?

POSTED BY z.n.alam ON February 15, 2014 12:05 pm ONE COMMENT

Hi Manish, I was browsing to get some information of retirement planning schemes. Came to know of NPS which is regulated by PFRDA and looks a good option to me. Apart from a very low fund management charges, it also has the benefit of Tax Exemption under sec 80CCD-2 over and above the 1Lac exemption under 80C subject to a cap of up to 10% of basic salary. I wanted to know your views on this.

I know the matured amount if withdrawn will be taxable, and so I wish not to withdraw but convert the entire corpus into annuity. I could have opted for Mutual Funds(SIP) as suggested in some of your/others articles but that requires lots of descipline. Whereas through NPS the amount will get deducted at source (just like PF) and I am forced to continue the account till retirement(which I want). Would request you to please share your views on the same.

One reply on this article “NPS as Retirement Solution – Pros & Cons ?”

  1. ashalanshu says:

    Dear Z n alam, the biggest drawback for NPS or any other pension plan is you are not sure of annuity i.e. pension in your post retired life. Also once opted the annuity, you can not change your annuity providor or annuity amount.

    Are you readu for such situation.

    Thanks

    Ashal

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