Life is unpredictable when it comes to savings and medical emergencies. With a limited number of options to secure your future, the national pension scheme comes as a ready reckoner to check the status of the safety net you have in case of any exigency. Whether it is retirement or any other situation of emergency, no amount of wealth accumulated over the years would suffice if it is not invested in a planned fashion. Though finances in liquid form are always required, it is advisable to invest in an instrument which serves as a wholesome retirement corpus allowing you to live a comfortable post-retirement life without the worries of finance and its management. Promoted by the government of India, the scheme encompasses easy investment, leveraging the advantage of tax benefits and giving a relaxed saving alternative.
Let us analyze the main advantages of NPS in light of it being an investment alternative for the long term:
- Robust Investment Flexibility: One of the primary features of NPS is its flexibility in terms of serving as a robust investment alternative. Investors get to choose the extent of control they wish to exercise over their investments or administer the handling to an expert fund manager. Besides, you can select a specific set of assets to invest in. This flexibility makes this scheme unique.
- Tax Saving Scheme: The NPS is tax-friendly as it allows a variety of tax deductions to be availed. This facility is provided under the Income Tax Act 1961, which is an added advantage to investors planning to avail pension benefits in their retirement years.
- Facility of Liquidity: The option of liquidity is an inherent part of this scheme. As you select the type of account to make your contribution Tier I and Tier II, there are ample benefits offered in each of the alternatives. These accounts can also be utilized for sufficing any liquidity needs in times of need. Thus NPS provides liquidity options in easy ways to suit the needs of its investors, making it one of its kind schemes.
- Withdrawal Options: One can face exigency at any point in time – whether it is a health issue or any other urgency requiring financial assistance. The pension scheme introduced by the government of India is supposed to support and provide a helping hand in such times of necessity. You can avail the option of partial withdrawal and use the funds that you have saved ardently over some time.
NPS thus serves as an additional source of funds at the time of retirement and elevates your reserves in the long term. Not only do you get the value of your assets and investments, but you can also plan your long-term investments to make your future safe and secure. There are several platforms which support your aspirations to invest prudently. One such platform is 5paisa which provides service and guidance for investment and security of the future by planning your fund investment in the right direction. The service providers make the process easier, smoother, convenient and quicker in addition to making it hassle-free. Finally, your wait for a suitable assistant to guide and invest on your behalf is over.