|Retirement Planning is all about, knowing your real retirement costs, building a kitty by investing prudently and having a systematic withdrawal plan from your kitty post retirement.
A systematic withdrawal plan from your retirement kitty is as integral as your savings strategy.Giving the increase in longevity, retirement kitty has to be frugally utilised over a period of time.Here is where National Pension System (NPS) perfectly fits in as a financial solution for retirement planning.
What is National Pension Scheme (NPS)?
National Pension Scheme, also known as New Pension Scheme, is a contribution retirement scheme, regulated by the PFRDA helps you build a retirement corpus in a systematic manner during your working life. On retirement, you can withdraw up to 60% of the corpus as lump sum amount. The balance will be saved in form of annuities, which comes back to you as a monthly pension. You even have the option of taking the entire corpus as a monthly pension.