Sunday, December 11, 2016
How to withdraw money from New Pension Scheme NPS
How to withdraw money from New Pension Scheme NPS
New Pension Scheme (NPS)
In my previous article I explained about New Pension Scheme (NPS) and the benefits of New Pension Scheme and also discussed about how to check balance in New Pension Scheme . New Pension Scheme in short called as NPS which is the default pension scheme for all the Central Government employees who joined the organization on or after 2004.Difference between Old Pension Scheme and New Pension Scheme
The main difference between the Old Pension Scheme and the New Pension Scheme is "in the old pension scheme after the retirement of the employee from the organization Government will provide certain amount monthly in the form of pension. The amount provided to the employee will depends on the basic of the employee what he/she is earning at the time of retirement(60 years).
In the New Pension Scheme from the starting of his/her employment both Employee and Government will invest certain amount (10 % of basic salary) in the market (controlled by PRFDA) through out his career. At the time of retirement 60% of the total deposited money can be withdrawn (lump some at the age of 60 or in total at the age of 62) and the remaining 40% of the money should be invested in any annuity (like Insurance or some other ) directed by the Government. The interest on the annuity is the pension for the employee in the New Pension Scheme.
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