A Smart Way to Plan for Retirement in India

Planning for retirement can feel overwhelming — especially when you’re living abroad. But what if we told you there’s a low-cost, government-backed, flexible retirement plan that you, as an NRI, can invest in?

Say hello to the National Pension Scheme (NPS).

Let’s break it down.

What is the National Pension Scheme (NPS)?

NPS is a voluntary retirement savings plan launched by the Government of India. It’s designed to help individuals build a pension corpus over time, with the added bonus of a regular income stream after retirement.

Yes, NRIs can invest too!

Why NRIs Should Consider NPS

1. Long-Term Wealth Creation:
Your investments are managed by professional pension fund managers and are diversified across equity, corporate debt, and government bonds.

2. Low-Cost Structure:
NPS is one of the lowest-cost retirement products in the world — which means more of your money stays invested and grows.

3. Tax Benefits:

• Investment up to ₹1.5 lakh/year is eligible for deduction under Section 80C.

• An additional ₹50,000 can be claimed under Section 80CCD(1B) — over and above 80C!

4. Flexible Contributions:
There’s no fixed amount or frequency. You can contribute as little or as much as you like, anytime.

5. Choice and Control:
You can choose how your money is invested — go for higher equity, a conservative approach, or let the auto-choice do the work.

Points to Keep in Mind

1. Locked Until 60:
You can’t withdraw the full amount until age 60 (though partial withdrawals are allowed under certain conditions).

2. Mandatory Annuity:
At maturity, 60% of the corpus can be withdrawn tax-free. The remaining 40% must be used to purchase an annuity (a regular pension plan).

3. Repatriation of Funds:
Withdrawals and annuity payments are subject to RBI’s repatriation rules. Make sure you’re clear on the process before investing.

Who is it Best Suited For?

• NRIs planning to retire in India

• Those looking for a disciplined, long-term retirement strategy

• Anyone wanting to diversify their retirement savings with Indian exposure

Final Thoughts:

If you’re an NRI looking to build a secure, stable, and tax-efficient retirement plan — the National Pension Scheme is worth serious consideration.

It’s affordable, flexible, and designed for the long run — just like your dreams.

Want to Know If NPS is Right for You?

Our experts at NRI Money Clinic can help you evaluate your retirement options, guide you through NPS registration, and even assist with ongoing contributions.

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Let’s build your future, the smart way.