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NPS Upon Maturity

Buying annuity for the unwithdrawn maturity amount of the NPS will entail you to periodic pension…

Suppose there is a scheme of the NPS which will continue till the age of 58-60 and the maturity value is Rs 50 lakh. In such a scheme, how will the pension be calculated?
-Dhyan Ranjan

The New Pension Scheme (NPS) stipulates that you can take out around 40 per cent of your accumulation and you have to buy annuity for the remaining part from an insurance company. You can defer not to annuitize it, so that the investment keeps appreciating, but buying that annuity will entail you to periodic pension. You can choose the annuity from any of the IRDA regulated insurance companies.

This article was originally published on January 04, 2012.

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