Highlights
- If you get FD in bank or invest money in PPF and want to improve your old age, then you need to think once again.
- If you had invested in NPS, you would have got much higher returns
- NPS has given excellent returns in the last 12 years
NPS Interest Rate: Pension Fund Regulatory and Development Authority (PFRDA) Chairman Supratim Bandopadhyay has said that the National Pension System (NPS) has given good returns to the people during the last 12 years. He said that any individual or stakeholder should start investing in this product early to get maximum benefits. If seen, now banks are getting up to 6 percent interest on FDs, while people have got one and a half to two times returns from NPS. You will get only 7.1 percent return on PPF.
How much return did you get in 12 years?
Addressing the Confederation of Indian Industry (CII) Insurance and Pensions Summit ‘Indian Insurance Sector – Riding the Wave of Change’ here on Monday, Bandopadhyay said, “The returns or returns under equity schemes during the last 12 years are 12 per cent. and it has been 9.9 per cent in government securities. In corporate bonds, it has stood at 9.59 per cent year-on-year despite some debt related developments. Our pension fund assets have largely survived these developments.
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Start investing in NPS early
Bandopadhyay said that we currently have a total fund of Rs 6,850 billion. The returns have been very good. NPS gives an option to adopt a very flexible approach. But one should start investing in it early. He said that there is flexibility in this because you have to pay only Rs 1,000. There is no fixed contribution in this. You can contribute to it at any level commensurate with your income from all known sources, complying with the Anti-Money Laundering Act (PMLA).
much better needs to be done
Bandopadhyay said that a lot still needs to be done to make India a pensioned society. Insurance Regulatory and Development Authority (IRDA), PFRDA and CII should together create a platform for spreading awareness about pension in the country. PFRDA offers two pension schemes NPS and Atal Pension Yojana (APY).
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