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There are a few retirement systems available for retirement savings. They are Employees’ Provident Fund (EPF) Cheap Jerseys , Exempted Provident Fund (PF), Public Provident Funds PPF), Pension Plans and National Pension System (NPS). The National Pension System offers better opportunity to save for retirement at the lowest cost with minimum amount of investment. Though It have many benefits, NPS has six unique advantages over other systems in India.

They are as below:

1. Portability
The NPS is based on Personal Retirement Account (PRA) which has the benefit of portability. There will be no change of status of the account when a person changes one job to another. When the subscriber changes his location from one place to another Wholesale Nike NFL Jerseys , the NPS account is portable across all regions in India.

When subscriber changes the nature of job profile from employee to professional or self-employed or vice versa, NPS account is portable. Now non -resident Indians are also permitted to contribute to NPS. The benefits of portability of NPS account makes seamless way of contribution, less procedure and continuity of accounts till retirement.

The choice of portability is absent across jobs and place under EPF.

2. Higher Tax Savings
Tax benefits are available under all the systems for retirement savings. In case of NPS, the additional tax benefits are available to save more tax and thereby earn higher post-tax returns.

The tax benefits available for retirement savings are:
The contribution to PFEPFPPFNPS qualify for deductions under section 80C and investments in pension plans under 80 CCC is combined to the extent of Rs. 150000-

Individual can claim additional deduction of Rs. 50000 under 80C for NPS contribution in addition to Rs. 150000 limit.

Employee covered under NPS can claim additional deduction of 10% of the employer’s contribution to the NPS in additional to the overall deduction of Rs. 150000+50000.

3. Choice of investments
Only NPS offers the choice of investment among the asset classes namely equity (E) Wholesale NFL Jerseys , Fixed income securities (C) and Government Securities (G). The subscriber to the NPS can choose any combination of asset classes to invest based upon their risk appetite.

However, the allocation of equity is restricted upto 50% of the contribution. If the choices are not made, the contributions are allocated to the asset classes based on life cycle (based on age).

The equity investment along with bonds not only earn higher real returns than bonds and has less volatility compared to equity for medium and long-term. The blend portfolio made of both bonds and equity becomes consistent performer irrespective of performance of equity markets. The above choice of investments is not available under both EPF and PPF.

4. Better Performance
Pension funds managed under NPS performed better than EPF and PPF. The following tables narrates the performance of various pension funds for the past five years ending March 2015.

All the funds under NPS performed better than existing pension schemes under all categories of asset allocation. Even minimum returns generated by pension funds are better than EPF and PPF, while real returns of EPF and PPF are close to bank deposits with 0.54%.

The real returns of 1.70% generated by NPS Government Securities is more than three times compared to real returns of bank deposits. In case of NPS equity and NPS corporate bonds Wholesale Jerseys From China , the best funds earned annualised real returns of 2.84% and 3.10% respectively for the past five years ending March 2015.

5. Choice of Fund Manager
Under NPS, subscriber to the NPS has choice of selecting the fund manager to invest in the funds managed by them. Further they can also change their fund manager to a better managed funds, if the subscriber is not satisfied with performance of the fund. The option of selecting and changing the fund manager is not possible under any other retirement systems.

The pension funds for the Government sector are LIC Pension Fund Limited, SBI Pension Funds Pvt. Limited and UTI Retirement Solutions Ltd.

The pension funds for the private sector are HDFC Pension Management Co. Ltd. ICICI Prudential Pension Fund Management Co. Ltd. Wholesale Jerseys China , Kotak Mahindra Pension Fund Ltd. LIC Pension Fund Ltd. Reliance Capital Pension Fund Ltd. SBI Pension Funds Pvt. Ltd., UTI Retirement Solutions Ltd and Pension Fund (PF) to be incorporated by Birla Sunlife Insurance Co. Ltd.

6. One system for All

The NPS covers all categories of employees, professionals and individuals both in organised and unorganised sectors. Any individual with age of 18-60 years can join the NPS under all citizen model

The employees of both central and state government including their autonomous bodies are covered under NPS. All the central government employees joining the services on or after January 1, 2004 are mandatorily covered under NPS

Under corporate model Wholesale Jerseys , all the employees of entities registered under the Companies Act, Co-operatives Acts, Central and state public sector enterprises, registered partnership firm Cheap NFL Football Jerseys , limited partnership concern, TrustSociety or body incorporated under any Act are covered.

Under NPS Swavalamban, the scheme will be applicable to all persons in the unorganised sector. The benefit of Central Government contribution under NPS Swavalamban will be available only to those persons whose contribution to NPS is minimum Rs.1,000 and maximum Rs. 12 Cheap Football Jerseys ,000 per annum.

Atal Pension Yojana scheme under Pension Security Program will cover all bank account holders who neither paying income tax nor members of any statutory social security scheme. The Central Government would contribute 50% of the contribution of Rs. 1000 whichever is less for the period of five years. The minimum age to contribute is 18 years, while ma
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