Imagine you are investing 1 lakh every year (50K self and 50K employer) starting at the age of 25. By the time you reach 40, you stop working, and by 50, your account has grown to 2 crore rupees. Now, what would you do if you have a medical condition? How much can you withdraw? You would only be able to withdraw around just 2 lakh rupees, leaving you to struggle for medicine despite having an NPS balance of 2 crores. This is the most frustrating part of NPS-the 25% partial withdrawal rule-that I truly dislike.All will assume that they will get 25% of total balance in case of emeregency but that is not the case and it is 25% of what you actully put as self without any intrest
If a person lack financial discipline or not experienced enough to handle market crashes, then NPS is the best option. In all other scenarios, NPS is a poor investment choice.
That is where health insurance comes. It should be a combination of NPS (for retirement) + Mutual funds (long term goals) + Bank deposit (emergency fund) + term insurance (to protect your family it anything happens to you) + Health insurance (large medical expenses).
@@nithinsatheesan Your point is valid. But it seems MF iteself will be a better option to cover both retirement + long term goals as the outcome of NPS will be always less than Mutual fund.
Everyone calls NPS a low-cost option, but I'm not sure in what sense. In mutual funds, we only pay 0.001% STT, with no other charges. The expense ratio is already factored into the daily NAV, so the XIRR reflects the return after expenses. However, in NPS, units are deducted from our account as fees, so simply comparing XIRR with mutual funds is not sufficient.
Can NRI from America invest in NPS if they have their NPS accounts opened when they were in India , this becomes more important if NRI are deciding to retire in India
No one is giving alternate to 40% annuity option. If i plan my annuity with higher % and at low cost, then y my rest among 40% corpus remains locked in return? Can somebody help that out plzz.
Problem with u anupam is u speak more and unnecessarily interfere the speaker.... Like in this case When ur guest was speaking of nos2 u didn't allow him to talk n explain... U started taking..... Mm
Nps tier 2 does not tell clearly about tax implications on withdrawal . This is a grey area. Next is annuity part - fix pension is an issue . You will get same pension on first month of retirement and even after 20 years of retirement which will very very less at that time…