Why NPS is a must-have in your portfolio?
Attractive Returns
Market-linked growth. Funds managed by investment experts
Low Cost investment
One of the lowest Fund Management Cost(FMC) across actively managed funds
Tax benefits
Exclusive tax benefits over and above 80C on contribution, accumulation & withdrawal
Flexibility
In contribution amount, asset allocation and investment choices & withdrawals
Strong Regulatory Framework
Introduced by Govt of India. Regulated and supervised by PFRDA
Quick Glimpse Into NPS
At Retirement
If accumulated corpus <= 8 lakh, 100% withdrawal allowed as lumpsum
If accumulated corpus if between 8 lakh -12 lakh, upto 6 lakh as lumpsum /SLW or a SUR(of minimum 6 years)
Save more and Pay less tax with NPS
Tax Benefit on contribution under section 80 CCD(1): Claim a tax deduction on contributions up to ₹1.5 Lakh per year. This is available only under old tax regime
Tax benefit on voluntary contribution under section 80 CCD(1B): Get an additional deduction on voluntary contribution of upto ₹50,000. This is available only under old tax regime
Tax Benefit on contribution from salary under section 80 CCD(2): A benefit exclusively for salaried individuals where contributions are routed through the employer. This is available under both the old and new tax regime. Tax Deduction on contribution upto 14% of basic salary under new tax regime and 10% of basic salary under old tax regime (max. limit of ₹ 7.5 Lakh).
Maximum deduction allowed:
The NPS provides subscribers with a flexible way to save for both long-term retirement goals and short-term financial needs. It offers two types of accounts:
1. Tier I Account
2. Tier II Account
Subscribers have an option to invest in multiple schemes available in below frameworks:
i. Multiple Scheme Framework (MSF)– Composite schemes designed by Pension Funds as per the risk appetite and goals of various customer segments.
HDFC Pension has launched the following schemes under MSF:
A growth-oriented pension fund for investors with high-risk appetite. This scheme offers upto 100% equity exposure with potential for high growth and wealth accumulation
A fund designed for growth-seeking investors, offering diversification across equity, debt. The fund balances growth potential through equity by combining capital stability through high quality debt with long-term wealth creation opportunities
ii. Common Schemes: A standardized NPS investment structure common for all Pension Funds.
| Asset | Maximum allocation |
|---|---|
|
E-Equity |
75% |
|
C-Corporate Bonds |
100% |
|
G-Government Securities |
100% |
Auto Choice (Set it, Forget it): Subscriber needs to select one of the Life Cycle Funds. The asset allocation gets adjusted basis the age of subscriber.
| Life Cycle | Age-wise allocation |
|---|---|
|
Life Cycle 75 – High |
(15E / 55Y) – Age-wise breakdown |
|
Life Cycle – Aggressive |
(35E / 55Y) – Age-wise breakdown |
|
Life Cycle 50 – Moderate |
(10E / 55Y) – Age-wise breakdown |
|
Life Cycle 25 – Low |
(5E / 55Y) – Age-wise breakdown |
When can I withdraw from my NPS account?
| Type of Exit/Withdrawal | Conditions | Withdrawal Rules | Tax Implications |
|---|---|---|---|
|
Normal Exit |
|
|
Upto 60% of total corpus withdrawn as lumpsum is tax free |
|
Premature Exit (Before Age 60) |
Before 60 years, 5‑year lock‑in applicable for government subscribers only. There is no lock in for non-government subscribers. |
|
Upto 60% of total corpus withdrawn as lumpsum is tax free |
|
Partial Withdrawal |
Up to 4 withdrawals allowed till age 60 with a minimum 4‑year gap. After age 60, withdrawals allowed with a 3‑year gap. |
Withdraw up to 25% of own contributions (not entire corpus) allowed for specific needs: education, medical treatment, home purchase. |
Tax-free |
|
Exit on Demise |
Death of the subscriber |
In the event of the unfortunate death of an NPS subscriber, the accumulated corpus can be claimed by the nominee/legal heir |
Tax-free for the nominee |
How much monthly pension you would need?
Know your retirement corpus!
HDFC Pension is here to solve all your NPS concerns! Our knowledge center is a comprehensive one-stop shop for all your NPS queries.
FAQs
The national pension System is government backed savings plan that helps you build a retirement fund for the future. The contribution amount is invested in market (like equity, bonds and government securities) to help it grow over time.
On retirement, the subscriber can withdraw part of money as a lumpsum and use the rest to get monthly pension, ensuring a steady income after retirement.
The National Pension system offers multiple tax benefits under the Income Tax Act, 1961.
Click here to open your NPS account with HDFC Pension. Fill in basic details, and our team will contact you for easy on boarding process.
