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What Is National Pension Scheme? How To Apply & Take Benefits?

Basically, In This Post Let’s Talk About One Of The Most Wanted Scheme From Government Of India, Which Is the “National Pension Scheme”. Also, We Will Update You On Interest Rates, Benefits, etc. On National Pension Schemes In India. So, Let’s Discuss On The Topics – How To Apply NPS, national pension scheme returns, national pension scheme SBI, national pension scheme Interest & More.


The National Pension Scheme is a retirement scheme introduced by the Government of India. It was launched on 1 January 2004. Initially, NPS was introduced to recruit new employees (other than Armed Forces forces) in the government, but with effect from 1 May 2009, it is being provided to all citizens of the country including the unorganized sector workers on a voluntary basis.

Any citizen of the country (whose age is between 18 and 60 years) can invest in this scheme for his retirement. He will get the benefit of this scheme. You can close your account after completion of retirement ie 60 years of age. During this time you can withdraw some money out of your invested amount and you have to buy an annuity product (annuity plan) from the remaining money. According to the same annuity plan, the investee gets a fixed amount of pension.

Investments in a Tier-1 account can never be withdrawn. Only after the age of 60 years, you can withdraw money from it. A minimum amount of Rs 500 is required to open this account and a minimum monthly contribution of Rs 500 can be made under it.

At the same time, Tier-2 investments can be withdrawn at any time. It is like a simple savings account. A minimum amount of Rs 1,000 is required to open this account and a minimum monthly contribution of Rs 250 can be made under it.

The amount invested in NPS is managed by the Pension Fund Regulatory and Development Authority. With this, only the fund manager who is registered and follows the instructions manages this fund. Prominent among them are ICICI Pru Pension Fund, LIC Pension Fund, SBI Pension Fund, and Reliance Capital Pension Fund.

Suppose you have deposited Rs 10 lakh in your NPS account till the age of 60 years. In such a situation, it is mandatory for you to buy an annuity plan of 40% i.e. 4 lakh rupees out of these 10 lakh rupees, while you can withdraw the remaining 6 lakh rupees at any time. However, if you want, you can also buy an annuity plan for full money.

If you assume that you have bought an annuity plan of Rs 10 lakh and at the time the interest rate of the annuity is running at 6%, then the insurance company will take you Rs 10 lakh and give you 60,000 rupees every year for life. If you choose the monthly income option, then you will get Rs 5,000 every month.


All NCERT Solutions For Class 12, How To Apply NPS, National Pension Scheme Returns, National Pension Scheme SBI, National Pension Scheme Interest & More.

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