InvestorQ : What is an ideal amount to invest in NPS?
Katherine Gonsalves made post

What is an ideal amount to invest in NPS?

Answer
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rhea Babu answered.
1 year ago


NPS is basically a retirement fund and due to it's tax-benefit under section 80D it has become popular investment option. However, investors can only get a tax-benefit upto Rs 50,000 per annum so investors should ideally invest max. Rs 50,000 in a year.
Investment in NPS can be realized only after the investor turns 60 years. So it is a good option for retirement planning. However, parking all your retirement fund on NPS is not a good idea because only 60% of the NPS corpus can be withdrawn. Also if an investor withdraws before the age of 60 years then the investor has to buy an annuity plan for 80% of the accumulated amount.
Even if NPS is a good option for investors to save tax and to plan retirement, investment should invest upto Rs 50,000 only.