The National Pension Scheme, backed by the Government of India, offers financial security to individuals during their retirement years. This plan is meant for private, public, & unorganised sector employees, except for armed forces staff. It is considered to be one of the most reliable Retirement Plans offering flexible investment options, tax benefits,& market-linked returns. Individuals can undertake retirement planning by investing funds at regular intervals of time during their careers to build the corpus for a secure financial future.
How to Open a National Pension Scheme Account (NPS)
Provided are the different platforms available to open a National Pension Scheme Account:
- Online Mode:
Visit enps.nsdl.com to open an NPS account online. It will take less than 30 minutes if your account is linked with your PAN, mobile number,&aadhar card.
- Offline Mode:
Visit your nearest Point of Presence (PoP), registered with the Pension Fund Regulatory & Development Authority,to collect the subscriber form. Submit the form along with the documents required. After making an initial investment ranging between INR 250 &INR 500 monthly or INR 1000 annually, you will receive a Permanent Retirement Account Number.
- Banks:
Many banks allow the opening of an NPS account either online or offline by acting as a Point of Presence (PoP).
- Points of Presence (PoPs) of NPS (National Pension Scheme) Entities:
There are many entities registered with the Pension Fund Regulatory & Development Authority (PFRDA) that help in opening an NPS account. One can look for the list of available PoPs on the National Pension Scheme website.
How to Invest in the National Pension Scheme?
Once you are done with your Retirement Planning & have decided National Pension Scheme to be your pension plan, there are two ways available to invest in the National Pension Scheme:
A. Online Mode
I. Via NSDL NPS Portal
- In the case of Existing Users
- Log in to the NPS portal with your Permanent Retirement Account Number & password.
- All the details required to have access to your account should be provided.
- In the case of Existing Users
- In the case of New Users
- The official portal of NSDL NPS should be visited.
- Select the option “Login with PRAN or IPIN”.
- To set up the account, click the tab “Reset Password”.
- Provide your password.
- Input some details, such as PRAN, a new password, your date of birth, & the captcha code.
- Confirm the same & click “Submit”.
- Provide the OTP received on your registered mobile number to verify & complete the setup process.
- Now, your PRAN & new password can be used to log in to the E-NPS account.
II. Via KFintech NPS Portal
- In the case of Existing Users
- Log in to the NPS portal& click on the option “Existing User”.
- To log in to your NPS account, provide your Permanent Retirement Account Number, password, & captcha code.
- In the case of New Users
- The official portal of KFintech NPS should be visited.
- Click the tab “Login” & choose the option “Existing Subscriber” to proceed.
- Click the tab “Reset Password” provided on the login page.
- Provide your Permanent Retirement Account Number & date of birth along with the captcha code.
- Click on the option “Submit”.
- Provide the OTP received on your registered mobile number to verify & complete the setup process.
- Now, you can log in to your account using your new credentials.
B. Offline Mode
- Your nearest Point of Presence (PoP) should be visited.
- Collect the subscriber form.
- Fill out all the required details in the registration form.
- Submit it along with the KYC-related documents.
- The payment towards the minimum initial investment should be made through cash or cheque.
How to Login to the National Pension Scheme Account for the 1st time?
Provided are the steps to log in to the NPS account for the 1st time:
Step 1: Submit the documentation required on the NSDL web portal or by visiting PoP to get a 12-digit Permanent Retirement Account Number.
Step 2: Now, launch the NSDL CRA Portal.
Step 3: To set a new password, input the PRAN along with your date of birth & captcha code.
Step 4: After providing these details, a unique IPIN will be generated.
Step 5: Visit the NSDL portal, go to the eNPS page, & opt to log in using the “PRAN or IPIN” option.
How to Withdraw under the National Pension Scheme?
Provided below are the steps to withdraw funds under the National Pension Scheme:
A. In case of Withdrawal to be done at the age of 60 years
- The subscribers are allowed to withdraw an amount equal to 60% of the corpus once the age of 60 years is completed.
- The remaining 40% will be used towards annuity purchases.
- In case the corpus funds are less than INR 5 lakhs, subscribers can also avail of a lump sum mode for the withdrawal of funds.
B. In case of Withdrawal to be done before the age of 60 years
- At least 80% of the accrued pension corpus of the subscriber should be utilised to buy an Annuity for a regular monthly income before he/ she reaches the superannuation age or turns 60.
- In case the corpus funds are less than INR 2.5 lakhs, subscribers can opt to withdraw 100% of the funds in a lump sum mode.
C. At the Death of the subscriber
- The corpus funds are transferred to the legal heirs or beneficiaries.
- The documents required are a death certificate, ID proof, etc.
Conclusion
The National Pension Scheme is a simple-to-understand, flexible, & portable scheme that helps boost income & save taxes. It is a low-cost plan which allows the building of an investment corpus for retirement alongwith taxation benefits. It provides a stable & secure financial future, hence helping individuals in retirement planning.
