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& avail Tax benefits!
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What is National Pension System (NPS)?
- A government sponsored retirement savings scheme
- Regulated by Pension Fund Regulatory & Development Authority (PFRDA)
- Allows regular contribution to a pension fund during working life
- Subscribers choose from Equity and Fixed Income funds to grow savings
- On retirement, a part of the corpus can be withdrawn in lumpsum
- Remaining corpus is invested in an annuity plan to secure regular income
Types of NPS Account
Tier-l account mandatory to join NPS
Investment is locked-in until the age of 60
Withdrawals are
conditional
Tax benefits can be
claimed
Only Tier-I account holders can open it
No lock-in period on
investment
Flexible withdrawal
& exit rules
No tax exemptions
on contributions
How NPS Works
Current Age
Accumulation Phase
Open NPS Account
Subscribers Death
Nominee/Legal heir
gets corpus
Retirement Age 60 Years
Withdrawal + 40%
Annuity Plan
Withdrawal Phase
Starts getting pension
Features and Benefits
By Pension Fund Regulatory & Development Authority (PFRDA)
Fund Management fees of less than 0.09% p.a.
Invest in asset classes and pension funds of your choice
With a mix of Equity & Debt
Transfer NPS account across employers & location
On Investment, Capital gain & Withdrawals
Investment Options under NPS
| Fund Option | Risk Profiling | Exposure Limit |
|---|---|---|
| Government Securities | Low |
Upto 100%
|
| Corporate Bonds | Moderate |
Upto 100%
|
| Equities | High |
Upto 75%
|
Tax Benefits
| Category | Under Section | Investment Limit in Old Tax Regime | Investment Limit in New Tax Regime |
|---|---|---|---|
Self-Contribution |
80 CCD (1) | ₹1,50,000 | Not Applicable |
Self-Contribution |
80 CCD (1B) | ₹50,000 | Not Applicable |
Employer Contribution |
80 CCD (2) | 10% of Basic Salary* | 14% of Basic Salary* |
*Employer Contribution to NPS account qualifies for deduction u/s 80 CCD (2). Permissible limit is 10% of basic salary for employees in old tax regime and 14% of basic salary for employees in new tax regime. Please note that employer’s contribution to NPS, EPF and/or Superannuation upto Rs. ₹7.5 lakhs p.a. cumulatively, is eligible for tax deduction; excess amount will be taxed as perquisite in the hands of the employee.
Auto Choice
Asset allocation for Aggressive plan
It automatically gets re-adjusted with the age of the subscriber as shown in the chart below:
| Your age | Equity | Corporate Bond | Government Securities |
|---|---|---|---|
| Upto 35 years | 75% | 10% | 15% |
| 36 years | 71% | 11% | 18% |
| 37 years | 67% | 12% | 21% |
| 38 years | 63% | 13% | 24% |
| 39 years | 59% | 14% | 27% |
| 40 years | 55% | 15% | 30% |
| 41 years | 51% | 16% | 33% |
| 42 years | 47% | 17% | 36% |
| 43 years | 43% | 18% | 39% |
| 44 years | 39% | 19% | 42% |
| 45 years | 35% | 20% | 45% |
| 46 years | 32% | 20% | 48% |
| 47 years | 29% | 20% | 51% |
| 48 years | 26% | 20% | 54% |
| 49 years | 23% | 20% | 57% |
| 50 years | 20% | 20% | 60% |
| 51 years | 19% | 18% | 63% |
| 52 years | 18% | 16% | 66% |
| 53 years | 17% | 14% | 69% |
| 54 years | 16% | 12% | 72% |
| 55 years and above | 15% | 10% | 75% |
Exit & Withdrawal
- Up to 60% of corpus can be withdrawn Tax-Free
- Minimum 20% to be invested in annuity for monthly pension
- If corpus ≤ to Rs. 5 lakhs, withdrawal of full amount is permitted
- On death 100% of the pension wealth amount will be payable to the nominee / legal heir of the subscriber
- There would not be any purchase of annuity / monthly pension
- Permitted only after 5 years of participation
- Up to 20% of corpus can be withdrawn Tax-Free
- Minimum 80% to be invested in annuity for monthly pension
- If corpus ≤Rs. 2.5 lakhs, withdrawal of full amount is permitted
- Up to 25% of the contributions deposited can be withdrawn
- In the entire life span, up to 3 withdrawals can be made
- 1st withdrawal can be exercised 3 yrs after a/c opening
- 2nd & 3rd withdrawal can be exercised anytime after previous one
NPS Calculator
Start your SIP with top performing funds
Please note: Subscribers will be able to know how tentative pension and lumpsum amount may be expected on retirement at 60 years basis regular monthly contributions to NPS account. A percentage of the corpus on retirement is used for purchasing annuity. Subscribers are required to key in the assumed rate of return on their investment and that for annuity to compute monthly pension. The above calculation and illustration of figures are indicative only and not on actual basis.
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NPS is regulated by Pension Fund Regulatory and Development Authority (PFRDA). ICICI Securities Limited is a PFRDA registered POP with Reg. no.: 05092018.
ICICI Securities is just acting as distributor and all disputes with respect to such distribution activity, would not have access to SCORES/ODR, Exchange investor redressal forum or Arbitration mechanism.
