Since the price of goods is skyrocketing rapidly with each passing year, more people are becoming aware of the importance of financial security for life after retirement. Pensions play a key role in providing a steady income during retirement, which makes it essential to save and invest in schemes that offer long-term stability. To help individuals prepare for this phase of life, the Government of India offers a variety of pension schemes designed to provide financial support during retirement. One such option is the National Pension Scheme (NPS).
The National Pension Scheme (NPS) is a voluntary, government-backed retirement savings plan regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Its main goal is to assist individuals in building a substantial retirement fund so they can remain financially independent in their later years.
When you invest in NPS, you are not only securing a regular income post-retirement but also ensuring that you can maintain your lifestyle and meet financial goals even when you no longer have an active income stream.
What Are The Benefits of Investing in the National Pension Scheme?
Let’s take a look at the benefits of investing in NPS.
Completely Voluntary:
One of the biggest benefits of NPS is that it is relatively flexible in nature, unlike many other investment plans. There’s no strict timeline for making contributions. For Tier 1 accounts, the minimum investment is Rs. 1,000 per financial year, and you can contribute as often as you like. For Tier 2 accounts, there are no minimum contribution requirements at all, giving you full control over when and how much you want to invest.
Easy to Invest:
Another major benefit of investing in NPS is that you can open an account through any of the Points of Presence (POPs), which are authorized entities like banks and financial institutions. Alternatively, you can easily open an account online through the e-NPS portal, which is accessible to everyone.
Portability:
Once you have an NPS account, you can manage it from anywhere in the country. This portability feature means that even if you change jobs or move to a different city, your NPS account stays with you. There’s no need to worry about transferring your pension account when you relocate.
Flexible Investment Options:
One of the major highlights of NPS is its flexibility regarding investments. Furthermore, you can choose any pension fund manager that suits your needs and decide how to allocate your funds across different asset classes, such as equity, corporate debt, and government bonds.
Well-Regulated and Transparent:
Another major highlight of NPS is that it is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the supervision of the Central Government. Thus, it ensures a high level of transparency and security for your investments. The performance of the fund managers is closely monitored by the NPS Trust, which ensures that your money is being handled responsibly.
Attractive Returns:
Last but not least, while NPS does not guarantee returns, it offers the potential for higher growth because a portion of the funds can be invested in equity markets. Equity investments have historically had the potential to outperform traditional savings options like the Public Provident Fund (PPF) or fixed deposits, which may give NPS an edge in terms of long-term wealth creation.
How To Register Yourself For The NPS Scheme?
If you want to register for the NPS scheme, here are the steps you need to follow.
- To start with the registration process, you will first need to visit the official website of eNPS.
- After that, on the title bar, you will see “National Pension System (NPS).” Move your cursor over it and click on “Register for NPS.”
- The moment you click on it, you will need to click on “Register Now” under “Individual Subscribers”.
- Then, simply enter your date of birth, Permanent Account Number (PAN), mobile number, and email ID. Then, click on “Begin Registration”.
- After that, you will see a message on the screen “Dear Subscriber, do you wish to continue registration with your Address? Simply click on “Yes” to continue.
- In the next step, you must enter the “Mobile OTP” and “Email OTP.” Once you enter both, you will see the “ACK ID Generated” and then click on the “Continue” button to proceed.
- After that, you will be directed to the “Verify Details” page, where you will need to enter your father’s details, mother’s details, and more. Once you are done entering everything, you will need to click on “Confirm”.
- First, choose the type of NPS account you want to open, either Tier 1 or Tier 2, and add details for one or more nominees.
- Next, select your pension fund manager. You can pick from ten available options, but you can only choose one manager.
- Then, decide how you want to split your investments among different types of securities. After that, you’ll be taken to a payment gateway. Then, ensure you make the required payment to get started.
- You can also complete your registration by using OTP verification or by adding your eSign to the form.
- In the final step, contributions will be credited to your Permanent Retirement Account Number (PRAN) within two business days, but only after the payment is confirmed by the Payment Gateway Service Provider.
How To Login Into Your NPS Account?
Here are the steps to log into your NPS account.
- Again, you will need to visit the official website of eNPS.
- After that, simply hover your cursor over the top right corner of the page and click on “National Pension System” under “Subscriber.”
- You will now be directed to the login screen.
- If you have your PRAN and password, enter them in the respective fields and click Submit to access your e-NPS account.
If this is your first time logging in, you’ll need to create a new password by following these steps:
- On the same login page, where you can see the blanks asking you to enter “User ID” and “Password” under the “Subscribers” section, simply click on the link “Reset Password” to generate a new password.
- Enter your PRAN, date of birth, and new password, confirm the password, and complete the captcha. After filling out the details, click the Submit button.
- You will receive an OTP on your registered mobile number. Enter the OTP on the screen to confirm your new password.
- Once done, you can log in to your e-NPS account using your PRAN and the newly created password.
Frequently Asked Questions
Listed below are the frequently asked questions related to the NPS Login and Registration Process.
The nominee or legal heir can withdraw the entire amount from the NPS account. However, if the account holder was a government employee, the nominee must buy an annuity plan and cannot withdraw the full amount.
The PRAN (Permanent Retirement Account Number) serves as the user ID for NSDL NPS.
After registering on the NSDL portal, your PRAN number is generated and sent to you via SMS and email.
The following people are not eligible for NPS:
- Individuals under 18 years of age
- Overseas Citizens of India (OCI)
- Persons of Indian Origin (PIO)
- Hindu Undivided Families (HUF)
Yes, a bank account is required to open an NPS account for making contributions and withdrawals.
