If social media scrolling has become your daily consumption material, you may have come across a new breed of digital creators offering advice on financial matters.

With millennials spending most of their time online, first-time investors are especially attracted to financial influencers or financial influencers from smaller towns and cities – anyone with knowledge on financial topics such as stock market trading, personal finance and mutual funds. and gives advice. The question is: How much can you rely on the Internet to make your financial decisions?

How to choose the right retirement tool?

Many experts believe that there is an increasing inclination towards early retirement after the pandemic, making it imperative for them to start saving early to enjoy their life once they stop working . However, with the rise of financial companies on the net, Millennials face the dangers of making hasty decisions without consulting their financial advisors or professionals.

Planning for retirement can be a daunting task for many, especially when they are unsure whether to rely more heavily on equity or debt to meet their old age financial needs. Also, pension plans offered by various insurance companies in India may not always offer attractive annuity payouts.

On the other hand, low-cost retirement solutions like the National Pension System (NSS)NPS) offers a variety of investment options and a choice of pension fund schemes to make retirement planning easier.

Invest with trusted brands for retirement planning

Just as doctors discourage patients from Googling before taking any medicine for their physical health, money experts advise caution before making decisions based on financial advice on the Internet for better financial health.

This government-sponsored pension scheme launched by the Pension Fund Regulatory and Development Authority (PFRDA) is open to all. Any citizen of India between the age of 18 to 70 years can apply to create an NPS account. This means that irrespective of income level and status, you can contribute to the scheme in small installments throughout your working life, availing benefits post retirement.

Stock Holding is the one stop solution for all your financial needs and is a pioneer in creating financial literacy in India with the safety and security of investments since 1986. It also provides advisory services to all NPS account holders.

Why you should invest in NPS

The scheme is like any other financial instrument that allows gradual investment after the age of 60 through periodic investments and annuity payments. Here are some of the benefits of planning your retirement with NPS:

1. flexible: NPS customers have the flexibility to switch from one investment option (equity, government securities and bonds) to another or from 7 different fund managers. Account holders can choose to invest in either Active or Auto mode.
2. Diversity: Since NPS investment is divided into debt and equity, it allows you to earn stable as well as market linked returns.
3. easy: On opening an account with NPS, one gets a Permanent Retirement Account Number (PRAN), which is a unique number and is maintained throughout the life of the subscriber. The scheme is structured into two types of accounts:

• Tier-I account: It is a non-withdrawable Permanent Retirement Account in which regular contributions made by the subscriber are credited and invested as per the portfolio/fund manager chosen by the client.
• tieR-II Account: This is a voluntary withdrawable account which is allowed only if the customer has an active Tier I account in his name. Withdrawals are allowed from this account as and when required by the customer.

1. portable: NPS provides a hassle-free system for individual subscribers when they shift to a new job or location, without leaving behind a corpus build, as is the case with many pension plans in India.
2. well regulated: NPS is regulated by PFRDA with transparent investment norms, regular monitoring and performance review of fund managers by NPS Trust.
3. Less cost: You can contribute a minimum of Rs 1000 in each financial year, while the minimum contribution required at the time of account opening is Rs 500.
4. power of compounding: Investors can take advantage of compounding in pension wealth accumulation over a given time period. Due to lower account maintenance charges, the benefit of accumulated pension money eventually becomes bigger.
5. easy to reach: The transaction can be done online to make it hassle free. You can check NAV, fund performance and contribution status anytime through the platform.
6. tax benefits: Investors can avail tax benefits up to Rs 2 lakh. Tax benefits can be availed under sections 80CCD(1), 80CCD(1B) and 80CCD(2).

Let us understand separately the tax benefits in NPS for salaried individuals for 80C which have expired and not expired.

One) if you have
Your 80C limit is not over yet , then you can invest up to 10% of your salary (Basic + DA). 1.5 lakh this amount is eligible for tax deduction under section 80CCD(1) of the IT Act, 1961. Additionally, you can invest up to Rs 50,000 and avail tax deduction under section 80CCD (1B).

b) if you have
Your 80C Limit Exceeded So you can invest up to Rs 50,000 and avail tax deduction under section 80CCD(1B) of the Income Tax Act, 1961. This tax benefit is higher than the tax benefits claimed by you for your investments up to Rs. 80c. under 1.5 lakh

C) There is additional tax benefit for salaried individuals under Corporate NPS. In this scheme, employees get additional tax benefits on investments made through their employer. Such investment of salary (basic + dearness allowance) up to Rs.7.5 lakh can be deducted from taxable income under section 80CCD(2) of the Income Tax Act, 1961.

On retirement, individuals can get a tax-free lump sum withdrawal of up to 60 percent of the total amount.

1. Do I need NPS when I already have PF?

PF is a small component as the pension under EPS is not sufficient to sustain the retirement life. Anyone can subscribe to NPS with PF. There is also a provision that recognized provident fund can be transferred to NPS.

Anyone planning for retirement through NPS can choose between various pension fund schemes based on their financial goals and risk appetite. The scheme is essentially a pension account, which means you can avail it only after the age of 60 years. After retirement, you can withdraw a certain percentage (not more than 60 per cent) of the corpus, while the remaining amount will be disbursed every month as pension.

To know how much you should invest today to get your desired pension after retirement, you can always use the NPS calculator available online. It will tell you how much money you can deposit as per your regular contribution and vice versa. you can do it
Enroll for NPS plan for worry free retirement through stockholding
and plan your retirement journey