National Pension Scheme In Budget 2024: What's New?

The National Pension Scheme is among the low-cost retirement investment options available to people for the retirement age. People looking to plan their retirement can invest in this scheme to secure their retirement and have a source of income. While the AY 2024-25 budget was announced by our Finance Minister Niramala Sitharaman, several new changes have been introduced in the scheme. Scroll down to learn more about the scheme and changes introduced. 

What Is The National Pension Scheme?

NPS stands for National Pension Scheme, under which the eligible candidates are required to invest a certain amount of their income every month. The savings pool of this scheme is managed by the professional fund managers of the Pension Fund Regulatory and Development Authority (PFRDA). The investment under this scheme grows over time and accumulates in the pool. The growth in this scheme depends on the returns earned on the total amount invested. 

Eligibility Criteria For NPS

Here are the eligibility criteria for NPS: 

• The applicant should be a citizen of India. 
• The age of the applicant should range from 18 to 60 years. 
• The applicant should comply with the KYC norms. 
• The applicant should submit all the required documents in the KYC form. 

NPS Vatsalya

Finance Minister Nirmala Sitharaman has introduced the National Pension Scheme for minors titled NPS Vatsalya under the budget AY 2024-25 This NPS plan will be converted to normal NPS once the child becomes an adult. 

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NPS Vatsalya is a plan for minors where parents contribute to the scheme regularly to secure their child's future. This account will save for the minor’s retirement. Further, the minister announced that the NPS contribution limit for private sector employers would be increased from 10% to 14% of the employee’s basic salary. 

NPS Schemes

Here are the names of the top NPS schemes as mentioned on the NPS site: 

• SBI Pension Funds
• LIC Pension Fund
• UTI Retirement Solutions
• HDFC Pension Management Company
• ICICI Prudential Pension Fund Management
• Kotak Mahindra Pension Fund
• Aditya Birla Sun Life Pension Management
• Tata Pension Management
• Max Life Pension Fund Management
• Axis Pension Fund Management

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