Which government pension scheme is best?

Asked by: Prof. Kacie Collins  |  Last update: February 9, 2022
Score: 4.6/5 (25 votes)

Best NPS Returns 2022
The National Pension Scheme is one of the most popular annuity products in the country. Investing in the NPS scheme not only provides an advantage to the investors over other fixed-income schemes but also offers the perk of tax exemption Under Section 80C and 80CCD of the Income Tax Act.

Who has the best government pension?

The Top 3 Pension Systems
  1. Netherlands. With an index value of 82.6, the Netherlands received the highest score for 2020, ranking first for the third year in a row. ...
  2. Denmark. Denmark came in a close second with an overall score of 81.4.
  3. Israel. Israel ranked third with an overall index value of 74.7 in 2020.

Which govt pension scheme is best in India?

The following are considered the top 10 pension plans in India at present:
  • LIC Jeevan Akshay 6 Plan:
  • LIC Jeevan Nidhi Plan:
  • SBI Life Saral Pension plan:
  • HDFC Life - Click2Retire:
  • HDFC Life - Assured Pension Plan:
  • ICICI Pru - Easy Retirement:
  • Reliance - Smart Pension:
  • Bajaj Allianz - Pension Guarantee:

Is NPS better than PPF?

As you can see, NPS makes for a great retirement savings scheme. It may not be the best scheme to invest in if your aim is to save for other purposes like children's education, daughter's marriage etc. For all of these needs, a PPF scores over NPS as the best investment scheme.

Why is NPS not good?

NPS being a long term investment, exiting from the scheme later on may prove detrimental while knowing how it works will help you accumulate the right amount for retirement. Here we look at factors that may not suit all investors. NPS does not have the option to invest 100 per cent of your savings in equities.

Gauranteed Pension Scheme | 2019 Top 4 Government Fixed Pension Scheme In India | Government Scheme

16 related questions found

Is NPS return guaranteed?


A portion of the NPS goes to equities (this may not offer guaranteed returns). However, it offers returns that are much higher than other traditional tax-saving investments like the PPF. This scheme has been in effect for over a decade, and so far has delivered 8% to 10% annualised returns.

What are the disadvantages of NPS?

Disadvantages or Cons of the NPS
  • Lesser Benefits (For the Government Employees) than the Earlier Pensions Schemes. ...
  • Withdrawal Limits. ...
  • Taxation at the Time of Withdrawal. ...
  • Account Opening Restrictions. ...
  • Investment Restrictions. ...
  • No Guaranteed Returns.

Is SBI pension plan good?

The SBI Life Saral Pension Plan is an individual participating non-linked traditional pension plan which comes with Guaranteed Bones and Simple Reversionary Bonus. ... If you are looking for a good retirement plan with a regular income, this plan is a good investment.

Who is eligible for NPS?

The employees of the corporate entity, enrolled by the employer having Indian Citizenship between the age of 18-60 years and complying with the KYC norms, are eligible to be registered as subscribers under NPS. Government of India has discontinued new subscription under NPS Swavalamban with effect from 01/April/2015.

Is NPS compulsory for government employees?

NPS is a market linked, defined contribution product. ... NPS is mandatorily applicable on Central Government employees (except Armed Forces) recruited on or after 01.01. 2004. Subsequently, all State Governments excluding West Bengal have also adopted NPS for their employees.

Is NPS good for government employees?

At the core, there is no difference between NPS for central or state government employees when compared to the NPS for public or corporate employees. ... The NPS Tier I and Tier II account structure is the same for all the entities, and so are the tax benefits on contribution as well withdrawal.

What is NPS scheme for government employees?

In NPS, a government employee contributes towards pension from monthly salary along with matching contribution from the employer. The funds are then invested in earmarked investment schemes through Pension Fund Managers.

How can I get 10000 pension monthly?

Atal Pension Yojana (APY) can provide decent returns along with safety on investments.
  1. A husband and wife can earn a pension of about Rs 10,000 per month by opening two separate accounts.
  2. A tax-paying couple can also apply for tax benefits against their investments in the scheme.

Is NPS risk free?

Low Risk Investment

As compared to other investment options, NPS bears comparatively low risk. ... Investors, who are at the age of 50, the risk exposure is 75%, which gets decreased by 2.5% by the time one reaches the age 60%. This equity exposure provides higher-earning opportunities with a lower risk exposure.

Who is not eligible for NPS?

Any Indian citizen in the age group of 18-60 can open an NPS account. NPS is administered and regulated by the Pension Fund Regulatory Authority of India (PFRDA). The NPS matures at the age of 60 but can be extended until the age of 70.

What is NPS interest rate?

The NPS interest rate usually ranges from 9% to 12% p.a. NPS contributions toward Tier I account are subject to income tax benefits.

How many years will I get a pension in the NPS after the age of 60?

Pension (Annuity) payable for 5, 10, 15 or 20 years certain and thereafter as long as you are alive.

How much should I invest in NPS monthly?

One needs to invest Rs 22000 each month to get a monthly pension of Rs 1 lakh. So, depending on your age, amount of savings, rate of return and the withdrawal rate, you can plan for getting Rs 50,000 or Rs 1 lakh or even a higher amount of lifetime pension.