Should I switch from a Superannuation scheme to the NPS?

Many corporations are introducing an option to switch from their existing Superannuation scheme to the national pension scheme (NPS). Here is what you need to consider before deciding to switch. Many wrongly think that the NPS comes with additional employer contribution tax deductions. This is incorrect. Up to Rs. 7.5 lakhs of employer contribution in…

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NPS to get systematic withdrawal facility: Good move or bad?

In Oct 2022, the Pension Fund Regulatory and Development Authority (PFRDA), the NPS regulator, released a draft proposal on implementing Systematic Lump sum Withdrawal (SLW) in the national pension scheme and sought public feedback. We had earlier discussed the withdrawal rules, the proposed change and our feedback on the same: NPS Systematic Lump Sum Withdrawal…

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NPS to allow multiple annuity purchase for retirement income optimization

In a circular dated 10th May 2023, NPS regulator PFRDA announced that retirees can now buy multiple annuities for “Retirement Income Optimization”. However, there are still considerable limitations and much more flexibility is required. The circular says (1) In the interest of optimising subscribers’ retirement income and providing them with a wider range of annuity…

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