The National Pension System (NPS) is a perfect solution for retirement planning. It provides old-age income with reasonable market-based returns. It is based on a unique Permanent Retirement Account Number (PRAN) which is allotted to every subscriber to NPS. Any individual can open a Pension account under NPS through eNPS.
The National Pension System is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). An Aadhaar card is mandatory for opening an NPS account. The KYC is done via OTP authentication from your registered mobile number in your Aadhaar.
The NPS matures at the age of 60 but can be extended until the age of 70. However, only 60% of the accumulated corpus can be withdrawn at the time of maturity. It is mandatory to invest the rest of 40% of the corpus in the annuity.
There are two types of NPS accounts:
- Tier-I NPS Account- this type of pension is a basic type of pension account with withdrawal limitations.
- Tier-II NPS Account- the withdrawals are not limited to this voluntary savings option
ELIGIBILITY:
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Anyone who is 18 years old and less than 65 years of age at the time of application can apply for NPS.
HERE IS HOW TO OPEN AN NPS ACCOUNT ONLINE:
- First, log in to the e-NPS website and click on the Registration option.
- An OTP will be sent to your registered mobile number after entering your Aadhaar or PAN details.
- Then choose the type of account you want to open.
- Now enter OTP for authentications if you have chosen the Aadhaar option.
- If you have chosen PAN, you will be charged Rs.125 in order to verify your bank details.
- Now fill in your personal details and click submit. This is to generate your acknowledgment number.
- Choose from any eight pension funds, you also have to choose the investment mode, and assign your nominees.
- Then upload the photograph and signature and make the payment.
- Now you will be allotted a Permanent Retirement Account Number (PRAN).
- Finally, download the form and get a printout.
Note: You have to mail it to the CRA office within 90 days with your sign and a photograph affixed.
HERE IS HOW TO OPEN AN NPS ACCOUNT OFFLINE:
Certain banks and post offices are appointed as Point of Presence (PoP) where you can open an NPS account.
- Visit the nearest POP-SP (point of presence service provider) and get an NPS subscriber form.
- Then fill and submit the form with the photocopy of your KYC documents.
