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June 13th, 2024
National Pension Scheme Plan in Cochin: Your Option to a Secure Retirement

National Pension Scheme Plan in Cochin: Your Option to a Secure Retirement

Hi investors, hope you are doing good.

One thing most Government employees benefit from is the regular pension after retirement.

But what about the private sector employees? 2 in 5 Indians have not begun retirement planning yet and 90% of Indians in the 50+ age group regret not saving earlier for retirement.
Retirement is the period where you give most of the time to your family, live stress-free, and be independent. So, why live in stress of your finances when you can enjoy it with early retirement planning? 
In this blog, we will tell you about how you can start retirement planning, what are the investment options, NPS, its benefits, and the best funds.

So, let’s begin.

What are the Retirement Investment Options for Indians?

When planning for retirement, you have several investment options to consider:

  • Employee Provident Fund (EPF): A popular choice for salaried individuals, EPF provides a secure and consistent return. Employees contribute a portion of their salary, matched by their employer, ensuring a decent corpus at retirement.
  • Public Provident Fund (PPF): PPF is a tax-saving investment option with attractive interest rates. It's a government-backed scheme suitable for those who want a risk-free investment.
  • National Pension System (NPS): NPS is a government-sponsored pension scheme, offering both equity and debt options. It’s designed to provide steady returns and is considered a flexible and low-cost investment.
  • Mutual Funds: Mutual funds, especially equity funds, are a preferred option for those seeking higher returns. They are managed by professionals and offer various plans tailored for retirement planning.
  • Fixed Deposits (FDs): FDs are a traditional investment option offering guaranteed returns. They are ideal for conservative investors who prioritize safety over high returns.
  • Real Estate: Investing in property can provide rental income and capital appreciation, though it requires substantial capital and involves higher risk.
  • Gold: Gold has been a trusted investment for centuries, offering a hedge against inflation and economic uncertainty.

 
Comparison Between Retirement Investment Options

Here's a brief comparison between various retirement investment option to help you decide: 

  • EPF vs. PPF: Both are safe, long-term investments with tax benefits. EPF is employer-linked, while PPF is available to all citizens.
  • NPS vs. Mutual Funds: NPS offers tax benefits and lower fees, making it a cost-effective option. Mutual funds can provide higher returns but come with higher risk.
  • FDs vs. Real Estate: FDs are low risk with fixed returns, whereas real estate can offer higher returns but with greater risk and liquidity concerns.
  • Gold: It's a safe investment but doesn't provide regular income. Suitable for diversification and inflation protection.

 What is NPS?

The National Pension Scheme (NPS) is a government-sponsored pension program designed to provide retirement income to all Indian citizens. It offers a mix of equity, corporate bonds, and government securities to balance risk and returns.
 

Benefits of NPS

  • High Returns: NPS equity funds have consistently beaten large-cap mutual funds over the last decade.
  • Low Charges: NPS has one of the lowest expense ratios compared to other pension products.
  • Tax Benefits: Contributions to NPS are eligible for tax deductions under Section 80C and Section 80CCD(1B) of the Income Tax Act.
  • Flexibility: Investors can choose their fund managers and investment options within NPS.
  • Regular Pension: Upon retirement, NPS provides a regular pension ensuring financial independence.

 

How to Get Regular Pension with NPS?

To get a regular pension with NPS, follow these steps:

  1. Open an NPS Account: You can open an NPS account through Thirukochi Financial Services, your trusted national pension scheme planner in Cochin.
  2. Contribute Regularly: Make regular contributions to your NPS account.
  3. Choose the Right Investment Option: Select from various fund options to balance risk and returns.
  4. Opt for Annuity Plan: At retirement, convert a portion of your NPS corpus into an annuity to receive regular pension payments.

List of the Best NPS Funds

Choosing the best NPS funds depends on your risk tolerance and investment horizon. Some top-performing NPS funds include:

  1. LIC Pension Fund
  2. Kotak Pension Fund
  3. HDFC Pension Fund
  4. ICICI Prudential Pension Fund
  5. UTI Retirement Solutions

Source: Cleartax
But remember, past performance may or may not be repeated in the future. So, don’t look at the past performance, get advice before investing.
 
Conclusion
Retirement planning is crucial to ensure a comfortable and independent life post-retirement. While there are several investment options available, the National Pension Scheme (NPS) stands out due to its high returns, low charges, and tax benefits. Start your NPS investment plan in Kochi today with Thirukochi Financial Services. Our expert advisors will help you navigate the complexities of retirement planning and ensure a secure future.
 
Are you ready to retire stress-free? Contact Thirukochi Financial Services, your reliable partner for NPS investment services in Cochin, and secure your future today!

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