New Financial Year will start from April 1, 2019. With this, there are some significant changes in the National Pension Scheme, i.e., those who will open the account in this scheme will be fully exempted in tax.
At least 80 percent of the fund that is created before 60 years, one have to take Life Annuity from the IRDA-approved insurance company.
According to the rules of this scheme, at the time of retirement, one will have to spend at least 40 percent of the total fund to purchase an extra-plan plan after this one gets the remaining money as a lump sum amount.
New financial year will start from April 1, 2019. With this, there are some significant changes in the National Pension Scheme, i.e., those who will open the account in this scheme will be fully exempted in tax. At the same time, the contribution made by the government under NPS has been increased to 14 percent. Earlier it was 10 percent. However, the minimum contribution to employees will be 10 percent. Also, any private employee can participate in this scheme of their violation along with the government. After retirement, the employees can withdraw one part of the NPS and can take the annuity for regular income. The amount of pension that one gets depend on the amount of money you purchase when you are 60 years old. The more you buy the annuity, the more money you get in pension every month. Annuity depends on HOW MUCH your pension wealth is.
At least 80 percent of the fund that is created before 60 years, one have to take Life Annuity from the IRDA-approved insurance company. One can make 20 percent of the remaining cash. On death before 60, the nominee is given full pension wealth.
According to the rules of this scheme, at the time of retirement, one will have to spend at least 40 percent of the total fund to purchase an extra-plan plan after this one gets the remaining money as a lump sum amount. In this case, if you buy an annuity plan of 50 percent, you will get around 57 lakhs during retirement time.
