National Pension Scheme 2024: Apply Online & Login

National Pension Scheme Apply Online & Application Form | National Pension Scheme Check Beneficiary Category & Last Date | National Pension Scheme Check Benefits & Features | National Pension Scheme Check Selection & Implementation Procedure | National Pension Scheme Check Eligibility & All Details | 

The National Pension Scheme (NPS) is a government-backed retirement savings scheme that aims to provide financial security to individuals during their post-retirement years. Launched in 2004, the NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and offers a range of investment options to suit the needs and risk appetite of different individuals.

This article will provide all types of information about the National Pension Scheme 2024 like purpose, Eligibility Criteria, Benefits, Features, important documents, etc. We will also share the process to apply online for this scheme. To get complete information about this scheme, read this article till the end.

National Pension Scheme          

The National Pension Scheme operates on a defined contribution basis, where the individual contributes a certain amount towards the scheme during their working years. These contributions are invested in various financial instruments such as government bonds, corporate bonds, and equities, depending on the choice of the individual. However, government employees who are covered by the General Provident Fund (GPF) or the Employees’ Provident Fund (EPF) are not eligible for the NPS.

Upon retirement, the accumulated contributions and the returns on investments are used to purchase an annuity, which provides a regular income to the individual during their retirement years. The annuity can be received as a lump sum or in monthly installments, depending on the preference of the individual. Additionally, an additional deduction of up to Rs. 50,000 is available under Section 80CCD(1B), making it an attractive option for individuals looking to save on taxes.

Highlights of National Pension Scheme 2024

The highlights of this scheme are as follows:- 

Objectives of National Pension Scheme 2024

The primary objective of the National Pension Scheme is to encourage individuals to save for their retirement and create a pension corpus that can sustain them in their old age. It aims to provide a regular income stream to individuals after they retire, ensuring financial independence and a comfortable lifestyle. Additionally, the NPS provides additional tax benefits for Tier II accounts and encourages investment discipline.

The National Pension Scheme (NPS) is a government-backed retirement savings scheme that offers numerous benefits to individuals planning for their post-retirement years. With its flexible investment options, regular income, low costs, and portability, the NPS has become a popular choice among investors. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), the NPS provides individuals with the option to choose their pension fund manager and offers online access for easy management of investments. 

Top 20 Visions of the National Pension Scheme

Here are 20 compelling reasons why the National Pension Scheme should be on your radar:-

• Diversification: The NPS offers a diversified portfolio of assets, including equities, corporate bonds, and government securities, reducing investment risk.
• Professional Management: Your NPS investments are managed by professional fund managers who aim to maximize returns while mitigating risks.
• Regulatory Oversight: The NPS is regulated by the PFRDA, ensuring transparency and accountability in the management of your retirement savings.
• Liquidity: While the NPS is designed for long-term investment, it also offers partial withdrawals under certain conditions, providing liquidity when needed.
• Regular Income: At retirement, you have the option to withdraw a lump sum amount and invest the remaining corpus in an annuity to receive a regular income stream.
• Portability: The NPS is a portable scheme, allowing you to transfer your account from one sector to another or from one Point of Presence (POP) to another.
• Tiered Structure: The NPS offers two tiers – Tier I, which is mandatory for investment, and Tier II, which is optional and provides greater withdrawal flexibility.
• Additional Tax Benefits: Apart from Section 80C, contributions to NPS are also eligible for an additional tax deduction under Section 80CCD(1B) of the Income Tax Act.
• Long-Term Wealth Creation: By investing in the NPS, you are creating a corpus that can help you achieve your long-term financial goals and maintain a comfortable lifestyle post-retirement.
• Automatic Asset Rebalancing: The NPS employs automatic asset rebalancing to ensure your investments are aligned with your risk profile and financial objectives.
• High Returns: Historically, the NPS has delivered competitive returns, outperforming traditional investment options like fixed deposits and savings accounts.
• Retirement Planning: The NPS is specifically designed to help you plan for your retirement, providing a structured approach to building a retirement fund.
• Risk Management: The NPS offers a choice between active and passive investment strategies, allowing you to manage risk according to your preferences.
• Online Account Management: You can easily manage your NPS account online through the Central Recordkeeping Agency (CRA) platform, making it convenient and hassle-free.
• Voluntary Contribution: In addition to the mandatory contributions, you can make voluntary contributions towards your NPS account to accelerate your retirement savings.
• Annuity Options: The NPS offers various annuity options at retirement, allowing you to choose a plan that best suits your income needs and lifestyle.
• Family Security: The NPS provides an additional benefit in the form of a nominee, ensuring that your family is financially secure in the event of your demise.
• Government Backing: The NPS is supported by the government, offering an added layer of security and credibility to your retirement savings.
• Inflation Protection: Through its diversified investment portfolio, the NPS aims to beat inflation and preserve the purchasing power of your savings over time.
• Financial Independence: By investing in the NPS, you are taking proactive steps towards achieving financial independence in your retirement years.

Beneficiary Category 

The NPS is open to individuals from various beneficiary categories, including employees from the public and private sectors, self-employed individuals, and non-resident Indians (NRIs). It offers a flexible and portable retirement savings solution, allowing individuals to contribute regularly towards their pension fund and choose their investment options based on their risk profile and financial goals.

Application Enrollment Last Dates

To enroll in the National Pension Scheme, individuals need to submit a duly filled application form along with the required documents to the designated Point of Presence (PoP) or through the online portal. The last dates for enrollment may vary, so it is important to check with the relevant authorities or visit the official NPS website for updated information.

Selection Procedure 

The selection procedure for the National Pension Scheme is simple. Once the application is submitted, individuals are assigned a unique Permanent Retirement Account Number (PRAN) which serves as their identification for all future transactions related to the NPS. The PRAN can be used to access the NPS account online and manage contributions, withdrawals, and investment options.

Implementation Procedure 

The implementation procedure of the National Pension Scheme involves the contribution of funds by individuals, which are then invested in various asset classes such as equities, corporate bonds, and government securities. The investment mix is determined based on the individual’s choice and risk profile. Over time, the accumulated funds grow and generate returns, which contribute to the individual’s pension corpus.

Supervision Body 

The National Pension Scheme is supervised by the Pension Fund Regulatory and Development Authority (PFRDA), which ensures the smooth functioning of the scheme and safeguards the interests of the subscribers. The PFRDA regulates the pension fund managers, custodians, and other entities involved in the NPS ecosystem, ensuring transparency, accountability, and compliance with the rules and regulations.

Tax Benefits

One of the key advantages of the Scheme is the tax benefits it offers. Under Section 80CCD(1) of the Income Tax Act, individuals can claim a deduction of up to 10% of their salary (for salaried individuals) or 20% of their gross income (for self-employed individuals) towards their NPS contributions. This deduction is over and above the limit of Rs. 1.5 lakh available under Section 80C. Furthermore, an additional deduction of up to Rs. 50,000 is available under Section 80CCD(1B) for contributions made towards the NPS, providing individuals with an opportunity to save on their tax liabilities.

Flexible Investment Options

The NPS offers investors a range of investment options to choose from, including equity, corporate bonds, and government securities. This flexibility allows individuals to align their investments with their risk appetite and financial goals. The scheme also offers two types of accounts – Tier I and Tier II. While Tier I is a mandatory retirement account with restrictions on withdrawals, Tier II is a voluntary savings account that provides individuals with the flexibility to withdraw funds as and when required.

Regular Income

Upon reaching the age of 60, individuals can withdraw up to 60% of their NPS corpus as a lump sum. The remaining 40% is used to purchase an annuity, which provides a regular income stream during retirement. This ensures a steady income for individuals even after they stop working, helping them maintain their standard of living.

Low Cost

The Scheme is known for its low-cost structure. The fund management charges for NPS are among the lowest in the market, ensuring that a significant portion of the investment is utilized for wealth creation rather than being eaten up by fees and charges. This makes the NPS an attractive option for long-term retirement planning.

Portability

Another advantage of the NPS is its portability. Individuals who change jobs or locations can easily transfer their NPS account to a different pension fund manager or to a different sector. This ensures that individuals can continue investing in the scheme without any hassle, regardless of their employment or residential changes.

Regulated by PFRDA

The Scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), which ensures transparency, accountability, and investor protection. The PFRDA regulates the pension fund managers, custodians, and other intermediaries associated with the NPS, safeguarding the interests of the investors and promoting a secure and efficient pension system.

Option to Choose Pension Fund Manager

Unlike other retirement savings schemes, the NPS provides individuals with the option to choose their pension fund manager. This gives investors the freedom to select a fund manager who aligns with their investment philosophy and has a proven track record of generating consistent returns. The ability to choose a pension fund manager empowers individuals to make informed decisions about their retirement savings.

Online Access

The NPS offers online access to its investors, allowing them to manage their investments conveniently. Through the online portal, individuals can check their account balance, view transaction history, make contributions, and switch between pension fund managers. This seamless online access adds convenience and transparency to the investment process.

Additional Tax Benefits for Tier II Account

While Tier I accounts offer tax benefits, Tier II accounts also provide additional tax benefits. Contributions made towards the Tier II account of the NPS are eligible for deductions under Section 80C, subject to a maximum limit of Rs. 1.5 lakh. This makes the Tier II account an attractive option for individuals looking to save on taxes while enjoying the flexibility to withdraw funds as and when required.

Investment Discipline

The Scheme encourages investment discipline by imposing restrictions on premature withdrawals from the Tier I account. This ensures that individuals maintain their long-term investment horizon and do not dip into their retirement savings for short-term needs. By promoting investment discipline, the NPS helps individuals build a substantial corpus for their retirement years.

Key Guidelines 

The key guidelines are as follows:- 

• Minimum contribution amount: Rs. 500 per month or Rs. 6,000 per year
• Maximum age for enrollment: 65 years
• Choice of investment options: Active choice or Auto choice
• Partial withdrawal allowed after completion of 3 years in the scheme
• Tax benefits available under Section 80CCD(1), 80CCD(2), and 80CCD(1B)
• Option to change investment preferences and pension fund manager
• Option to switch between different investment options
• Option to make additional voluntary contributions
• Regular updates and statements provided to subscribers
• Option to continue contributing even after retirement

Important Instructions 

Some important instructions issued for applicants are as follows:- 

• Ensure accurate and complete information while filling the application form
• Provide valid and up-to-date contact details for communication
• Keep track of contribution due dates and make timely payments
• Review and update investment preferences periodically
• Understand the risks associated with different investment options
• Keep the PRAN and other account details confidential
• Follow the guidelines and regulations set by the PFRDA
• Seek professional advice for financial planning and investment decisions
• Stay informed about any changes or updates in the NPS
• Plan for a diversified retirement portfolio beyond the NPS

Tips & Tricks

Some tips and tricks are as follows:-

• Start investing in the NPS early to benefit from compounding returns
• Choose the investment option that aligns with your risk tolerance and financial goals
• Consider diversifying your investments across different asset classes
• Review your portfolio regularly and rebalance if necessary
• Take advantage of the tax benefits offered by the NPS
• Explore the additional voluntary contribution option to boost your pension corpus
• Stay updated with the latest market trends and economic developments
• Seek professional guidance for retirement planning and investment strategies
• Monitor the performance of your pension fund manager
• Keep track of your NPS account statements and contributions

General Points to Remember

Some general points to remember are as follows:-

• The National Pension Scheme is a long-term retirement savings solution
• It offers flexibility, portability, and tax benefits
• Individuals can choose their investment options and pension fund manager
• Regular contributions and periodic reviews are essential for optimal results
• Seek professional advice for personalized retirement planning
• Stay informed about the latest updates and changes in the NPS
• Plan for a diversified retirement portfolio beyond the NPS
• Start early and save consistently for a secure and comfortable retirement
• Regularly monitor and track the performance of your NPS investments
• Review and update your pension strategy as per changing circumstances

Benefits of National Pension Scheme 2024

The benefits of this scheme are as follows:-

• Tax Benefits: One of the major advantages of the NPS is the tax benefits it offers. Contributions made towards the scheme are eligible for tax deductions under Section 80CCD(1) of the Income Tax Act, 1961, up to a certain limit. Additionally, an additional tax deduction is available under Section 80CCD(2) for contributions made by employers.
• Flexible Investment Options: The NPS provides subscribers with the flexibility to choose their investment options. They can select between two types of investment choices: Active Choice and Auto Choice. Active Choice allows subscribers to decide the asset allocation among equity, corporate bonds, and government securities. Auto Choice, on the other hand, automatically adjusts the asset allocation based on the subscriber’s age.
• Regular Income: Upon retirement, subscribers can avail of a regular income through the NPS. They can choose to receive a monthly pension or withdraw a certain percentage as a lump sum and receive the remaining amount as a monthly pension.
• Low Cost: The NPS has one of the lowest fund management charges compared to other pension schemes. This ensures that a significant portion of the contributions is invested, maximizing the returns for the subscribers.
• Portability: The NPS is a portable pension scheme, which means that subscribers can contribute from anywhere in the country. It also allows for easy transfer of funds from one account to another, making it convenient for individuals who change jobs or locations.
• Regulated by PFRDA: The National Pension Scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), ensuring transparency and accountability in the management of funds.
• Option to Choose Pension Fund Manager: Subscribers have the option to choose their pension fund manager from a list of authorized entities. This gives them the freedom to select a fund manager based on their preferences and track record.
• Online Access: The NPS provides online access to its subscribers, allowing them to track their contributions, view their account statements, and make changes to their investment preferences conveniently.
• Additional Tax Benefits for NPS Tier II Account: Subscribers who have an active NPS Tier II account can avail of additional tax benefits under Section 80C of the Income Tax Act, 1961, subject to certain conditions.
• Investment Discipline: The NPS encourages long-term investment discipline among its subscribers. The funds are invested in a diversified portfolio, reducing the risk associated with market fluctuations.

Features Of National Pension Scheme 2024

The features of this scheme are as follows:-

• Voluntary Contribution: The NPS is a voluntary contribution-based pension system, allowing individuals to contribute towards their retirement savings as per their financial capacity.
• Individual and Corporate Accounts: The scheme offers both individual and corporate accounts. Individuals can open an NPS account on their own, while employers can also contribute to their employees’ NPS accounts.
• Choice of Pension Fund: Subscribers have the option to choose their pension fund manager from a list of authorized entities. They can switch between fund managers if desired.
• Multiple Investment Options: The NPS offers different investment options, including equity, corporate bonds, and government securities. Subscribers can choose their preferred asset allocation based on their risk appetite and investment goals.
• Auto Choice: The Auto Choice option automatically adjusts the asset allocation based on the subscriber’s age. It gradually reduces the equity exposure and increases the allocation towards safer options as the subscriber approaches retirement.
• Partial Withdrawal: Subscribers can make partial withdrawals from their NPS account for specific purposes such as higher education, marriage, or the purchase of a house.
• Annuity Options: The NPS offers various annuity options to subscribers at the time of retirement. They can choose between different types of annuities based on their preferences and financial needs.
• Family Pension: In the event of the subscriber’s demise, the NPS provides for a family pension to the spouse or nominee, ensuring financial security for the family.
• Exit and Withdrawal: Subscribers can exit the NPS upon reaching the age of 60 or superannuation. They can withdraw a certain percentage as a lump sum and use the remaining amount to purchase an annuity.
• Regulatory Oversight: The NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), which ensures that the scheme operates in a transparent and efficient manner.

National Pension Scheme Eligibility Criteria 

The applicants will need to follow the below-mentioned points to apply online for this scheme:-

• Indian citizens aged between 18 and 65 years
• Non-resident Indians (NRIs) aged between 18 and 60 years
• Employees of the central government, state government, and autonomous bodies
• Employees of private companies, including the organized and unorganized sectors
• Self-employed individuals

Important Documents 

Some of the important documents required to apply online for this scheme are as follows:-

• Aadhar Card
• Residence Certificate
• Income Certificate 
• Educational Certificates 
• Bank Account Details 
• Latest Passport Size Photos 
• Mobile No
• Email ID 

National Pension Scheme Apply Online 2024

The applicants will need to follow the below-mentioned points to apply online:- 

• Go to the Official Website of the National Pension System.

• Click on the link “Open Your NPS Account/Contribute Online“.

• Select “National Pension System“.
• Click on the link “Registration“.

• Fill out the registration form.
• Select “Tier One Only” in the account type.
• Click on the “Continue” button.
• Fill out the “Complete Pending Registration Form”.
• Click on the “Submit” button.
• Fill out the e-sign form and submit it.

NPS Portal Login Procedure

The applicants will need to follow the below-mentioned points to login:-

• Go to the official website of the National Pension System.
• Click on the “Login” option.
• Select your category from the drop-down box.
• Enter your username, password, and captcha code.
• Click on the “Login” button.

NPS Entity Viewing Procedure

The applicants will need to follow the below-mentioned points to view the NSP entity:-

• Go to the official website of the National Pension System.
• Click on the “Subscriber Corner” option.
• Click on the link “Entities in NPS“.
• You will be able to see the entities on the new page.

Nearest NLC Finding Procedure

The applicants will need to follow the below-mentioned points to view NLC:-

• Go to the official website of the National Pension System.
• Click on the “Find Your Nearest NLC” option.
• Click on the “Click Here to Download” option.
• You will be able to see a list of nearby NLCs on your screen.

CRA-FC Finding Procedure

The applicants will need to follow the below-mentioned points to find CRA-FC:-

• Go to the official website of the National Pension System.
• Click on the “Find Your Nearest CRA-FC” option.
• Select your city from the drop-down box.
• Click on the “Go” button.
• The relevant information will be displayed on your screen.

Corpus Calculation Procedure

The applicants will need to follow the below-mentioned points to calculate corpus:-

• Go to the official website of the National Pension System.
• Click on the “Retirement Planning” option in the “Subscriber Corner” section.
• Click on the “Corpus Calculator” option.
• Enter all the required information on the new page.
• Click on the “Submit” button.
• The relevant information will be displayed on your computer screen.