Business News Desk – People’s interest in savings and investment has increased. But, retirement planning is not their priority. This information has come from a study by Max Life Insurance. About 50 percent of the people involved in the study believed that their savings would hardly last for 10 years after retirement. About 31 people said that they do not know how much money they will need after retirement and how big their retirement fund should be. However, 44 percent people believed that retirement planning should start before the age of 35.
government scheme
Ranbir Singh Dhariwal, CEO of Max Life Pension Fund Management, said that NPS can prove to be very helpful in retirement planning. He said that awareness about NPS is increasing among the people. In the last three years, awareness about it has increased from 59 percent to 70 percent. In Tier 2 cities it is 78 percent. He said that there are many options in NPS, which provide an opportunity to create good wealth in the long term. This is a government scheme, so it is easy to trust.
Great returns in the long run
About 90 percent of the people involved in the study believed that NPS is a safe and reliable option for retirement planning. Dhariwal said that a major feature of NPS is that it is the lowest cost retirement scheme in the market. This means that most of the subscriber’s investment money is used to create a good fund over the long term. Due to being linked to the market, it gives very good returns in the long run. In this, subscribers can choose the option according to their risk appetite.
Withdrawal facility when needed
NPS is also attractive in terms of liquidity. If the subscriber needs money, he can withdraw 25 percent of the fund in three installments. In this way it is like an emergency fund for the subscriber. This also gives the subscriber a tax saving opportunity. This is the only investment product in which investment also gets exemption in the new income tax regime. Along with employed people, self-employed people are also allowed to invest in NPS. NPS account can be kept active by investing at least Rs 1,000.
