National Pension System (NPS) is one of the most preferred investment instruments among investors because of its tax benefits, low-cost structure, and good returns

1. Marketing of Financial Services
Topic: National Pension Scheme(NPS)

2. Outline
 Introduction
 Regulator and entities for NPS
 Features and benefits of the National Pension
System
 Types of NPS Account
 Comparing NPS scheme with other Tax Saving
Instruments

3. Introduction: NPS
 World's life expectancy is expected to reach 75 years by 2050
from present level of 65 years. (According to United Nations
Population Division)
 Better health and sanitation conditions
 Post-retirement years Increasing
 Retirement planning essential part of today's life.
 National Pension System

4. Introduction: NPS
 Government of India established Pension Fund Regulatory and
Development Authority (PFRDA)-
 The National Pension System (NPS) was launched on 1st
January, 2004
 Provide retirement income to all the citizens.
 Aims to institute pension reforms and to inculcate the habit of
saving for retirement amongst the citizens

5. National Pension Scheme
 It is a social security and welfare scheme
 Easily accessible, low cost, tax-efficient, flexible and portable
retirement savings scheme.
 The eventual benefit of the accumulated pension for the
subscriber

6. REGULATOR AND ENTITIES FOR NPS
 Pension Fund Regulatory and Development Authority (PFRDA)
 Point of Presence (POP)
 Central Recordkeeping Agency (CRA)
 Annuity Service Providers (ASPs)

7. Features and benefits of the National Pension System
 Voluntary
 Easy access
 Tax benefits
 Flexibility
 Portability
 Low-cost structure
 Regulated by PFRDA

8. Types of NPS Account
Particulars NPS Tier-I Account NPS Tier-II Account
Status Default Voluntary
Withdrawals Not permitted Permitted
Tax exemption Up to Rs 2 lakh
p.a.(Under 80C and
80CCD)
1.5 lakh for
government employees
Other employees-
None
Minimum NPS
contribution
Rs 500 or Rs 500 or
Rs 1,000 p.a.
Rs 250
Maximum NPS
contribution
No limit No limit

9. Comparing NPS scheme with other Tax Saving Instruments
Investment Interest Lock-in period Risk Profile
NPS 8% to 10% (expected) Till retirement Market-related risks
ELSS 12% to 15% (expected) 3 years Market-related risks
PPF 8.1% (guaranteed) 15 years Risk-free
FD 7% to 9% (guaranteed) 5 years Risk-free

10. You Tube Link
https://youtu.be/gbvCeG56baE