A Comprehensive Guide to NPS Investment: Understanding the Annuity Scheme, Eligibility, Allocation, and Tax Benefits

Welcome to this variant video, where we'll dive into the world of NPS (National Pension Scheme) and explore what it means to be a self-employed or home maker looking to invest in this popular scheme.

Here are the 22 clean bullet points summarizing the video:
The video is about National Pension Scheme (NPS) and its various aspects.
NPS is a government-sponsored pension scheme for individuals, including self-employed and home-makers.
To invest in NPS, one needs to be a member of a trust or partnership firm.
The minimum annual contribution to an NPS account is ₹ 1000.
There is no minimum annual construction requirement.
If you already have an NPS account, you can open a new one and allocate funds accordingly.
The allocation in the first 35 years is 75%.
After age 35, the equity allocation will reduce by 4% every year until age 55.
At age 55, the equity allocation will be limited to corporate bonds or government securities.
The maximum investment allowed is 5% of the total fund size.
This high-risk, high-return principle applies to NPS investments.
There is a tax angle: additional ₹ 50,000 deduction is available for employee contributions under old tax regime (NPS is an annuity scheme applicable only to salary-based employees).
The employer's contribution in the old scheme was 12% of salary.
In the new scheme, there is no minimum or maximum limit for employer contributions.
NPS is a pension scheme that provides financial security after retirement.
The video aims to educate viewers about NPS and its various aspects.

Source: CA Rachana Phadke Ranade via YouTube

❓ What do you think? What are the potential consequences and implications for an individual who invests in NPS, considering factors like risk tolerance, financial goals, and tax benefits? Feel free to share your thoughts in the comments!