NATIONAL PENSION SYSTEM

AMFI-Registered Mutual Fund Distributor

Client Login  Enquiry Now

Page Title

Home / NATIONAL PENSION SYSTEM

National Pension Scheme


NPS (National Pension System) stands as a Government-backed, cost-effective retirement solution. Individuals in India falling within the age range of 18 to 70 have the option to participate in the NPS scheme. Commencing in 2004, it became universally accessible in 2009. The governance of NPS falls under the jurisdiction of the Pension Fund Regulatory and Development Authority (PFRDA).

Eligibility: The NPS scheme is open to every Indian citizen aged 18 to 70.

Groww Lakshmi Finserv has been designated by PFRDA to serve as a Point of Presence (POP) for NPS. Our online portal facilitates various NPS activities as a Point of Presence-Service Provider for seamless opening and subsequent contributions to NPS.

Open NPS Account

Why invest in NPS?

  • Reliable Retirement Corpus

  • Accessible to all Indian citizens

  • Regular Pension

  • Provided for meeting daily needs

  • Market-Based Long-Term Investment Scheme

  • Beneficial for all participants


Features of NPS


Flexibility

Investors can choose their fund manager from seven different fund managers and opt for either Active or Auto mode.


Liquidity

Sixty percent of the total amount can be withdrawn, with the remaining portion available for investment in annuity plans after reaching the age of 60. Emergency withdrawals, up to 25% of the amount, are also permitted after three complete years.


Diversification

NPS allows selection from various asset classes, including equity, corporate bonds, government securities, and alternate funds, minimizing overall risk.


Tax Benefits

The NPS scheme offers tax benefits up to 2 Lakhs, falling under three provisions: 80CCD(1), 80CCD(1B), and 80CCD(2). Upon retirement, individuals can make a tax-free lump sum withdrawal of up to 60% of the total amount.


Low Cost

Contributions in the NPS scheme start from a minimum of Rs. 1000 per financial year. The minimum contribution required at the time of account opening is Rs. 500.


Hassle-Free

All transactions within the NPS can be conducted online, ensuring a hassle-free experience. The platform also allows users to check fund, NAV, and contribution status.


Withdrawal option



Before the age of 60 years

You would be required to invest at least 80% of the pension corpus accumulated to purchase a life annuity from any IRDA-regulated life insurance company. The remaining 20% of the pension wealth may be withdrawn as lump sum.

60 to 70 years of age

You would be required to invest a Min of 40 percent of your accumulated savings (pension corpus) to purchase a life annuity from any IRDA-regulated life insurance company. You may choose to purchase an annuity for an amount > 40%. The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60 or in a phased manner, between age 60 and 70, at the option of the subscriber.

In the unfortunate event of death

Withdrawal option will be available to the nominee to receive 100% of the NPS pension corpus in lump sum.