New Pension Scheme: Benefits and Features
The new pension scheme that is launched by Govt. of India is regulated by the body named as P F R D A. Basically new pension scheme is meant for a stable and wise planning of retirement in which all the members have to invest in equity funds.
The main benefit of new pension scheme is that all investors have to invest in the equity funds. The mode of investment may be spanned for the entire life of the investor. The cost of the investment in this new pension scheme is quite low and the charges of fund management are also very low. This makes it one of hot favourite schemes for investment and retirement planning.
This new pension scheme is available to all the people from any organized as well as from the unorganized sector. This is present in all over the nation. All the persons are able to open new pension scheme in a very swift & efficient manner. The process to open this new pension scheme is very easy. People are free to open this new pension scheme at around seventeen banks and four financial institutions.
As per the age is concern, the bracket of age for this new pension scheme is from 18 to 55 years. For this new pension scheme, the minimum contribution is only Rs 500 at given time but there are charges for amount deposition. Thus, it is recommended to deposit one big amount rather than many small amounts. The best part is that there are variety of the options like one can choose to invest in the equities, corporate bonds or government securities. Other benefit of new pension scheme is that it falls under the Tax Exemption category.
It is the smart Investing because after 35 years of age, the investment to the equity by a person begins to come down & the proportion of debt increases to control of risk factors. For this purpose, it is recommended for all to get started at early age to reap maximum benefits of this new pension scheme.
This new pension scheme generates some good & decent returns. Also it is expected to give 14-20 percent returns in the long run and is among safe options to invest your money in these turbulent times. Though the only thing which restrains users is taxed withdrawal but if government decides to make withdrawals also tax free, then new pension scheme is a must have retirement planning option for all.
Personal financial planning is very important in uncertain economy of these days. Along with complexity of saving or investing options, it is difficult to manage your finances. By having personal financial planning you can see the true picture &set long or short-term goals that are crucial steps in the mapping out the financial future.
Personal financial planning helps also you in following own personal financial plan that is based on the financial &non-financial situations. It will help you to meet with the financial tragedies in life if things turn wrong. When you follow a personal financial plan, you can make the financial decisions with ease.
Know about new pension scheme from http://goodmoneying.com/retirement-planning/new-pension-scheme for investment purposes.
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