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KI“Big changes in NPS that could completely change the way you retire! I have never been a fan of NPS but these changes look very positive! Let me explain,
(1) The biggest draw back of NPS goes away. Earlier you could only invest a maximum of 75% in equity but now fund managers can offer 100% equity portfolios
(2) The 100% equity portfolio can have upto 5% in gold, silver and other alternates as well.
(3) Another big change is Early exit rules. Earlier you had to stay invested till 60, but under the new framework, you can exit after just 15 years. So let’s say, If you start at 30 and exit at 45, under the old rules you could only take 20% lump sum and the rest, 80%, had to go into annuity. Under the new rules, it’s the reverse you can take 80% lump sum and only 20% in annuity.
(4) Now you can also do partial withdrawals after 3 years & also take loan against your NPS which was not possible earlier.
The only problem is the cost can go up because the current TER is 0.09% but the new TER is allowed to go up until 0.30% which is 3.5 times higher
Btw Tax advantage, is over & above this!
If you have any doubts do comment will try and help.
#nps #retirement
@kirtanshahcfp
