I admire Gajendra ji, the way he emphasises on COMPOUNDING. He is definitely pounding the most out of compounding. He has also demonstrated amazing knowledge on various products, be it NPS or Mutual fund or any kind of investments. Thank you Gajendra ji for sharing so much of data openly with everyone. You are a bless and I reciprocate many more blessings to you.
I see a point why people want to withdraw all 100%. However we must understand the main purpose of this product is to assure your survival during retirement. Not all will be blessed with good health and good people around them. At least 40% is locked to provide you bare minimum, especially if you have cheaters or needy people around you. I know a case where the family said that they must take very good care of their granny as the pension she was drawing was going towards the house EMI they were staying in. Consider she was given lumpsum amount instead of pension, not sure she would be cared enough.
This is a valuable discussion. I have invested voluntarily in 2019 and ramped up my contribution upwards of 30 lkh and currently it's showing above 55lkh at 16% Xirr. I am expecting only 10 to 12 % returns hereon for next 10 years.
@Peacetoeveryone95 Bhai I have invested only some part of my portfolio in NPS. My feeling is that most advisors don't recommend this scheme as the commission is very low. The returns generated in NPS are quite decent, the mandate given by government is safety of capital. And 60% maturity amount without tax cannot be ignored.
@@shejwalkarhemant3110 bro you are loosing 40% of the total amount, have anyone know about annuity scheme, it's called "pension" but the reality is you get only the interest as pension and that too it's constant for the rest of the life without inflation accounted
There is also SLW systematic lumpsum withdrawal scheme in NPS which is not discussed. Also minor NPS Vatsalya can be regularised in to regular NPS account after the age of 18 .
Invest 100% in the equity tier 2 account, and finally transfer to tier 1 account. This is applicable for person who availed all the tax benefits options available in NPS.
Additionally investors can now invest 100% in Equity in the Tier 2 account. It appears you guys made this video in haste without even checking the current options and rules!
Anna, who is this expert? These are the basics we expect experts to know. It was such a big change and tour expert doesn't even know that we are go 75% equity under active choice until age 75? And these people are EXPERTS and they plan for others?
Think of the Tier 2 account like a Savings Account. The only difference is that rather than getting approx. 4 to 5% in a Savings Account you are now getting almost 12 to 14% in the Tier 2 Account. Similar to the Savings Account, any interest earned is added to regular income.
Withdraw money post retirement so you don't hv income and no need to pay taxes or else transfer to tier 1 account withdraw 60%. Rest which you would hv paid as taxes get annuity😅
The mandatory reduction of 2.5% in Equity past the age of 50 was removed years ago and changed to 60 years. Hence investors can now hold 75% in Equity under Active Choice until the age of 60. The information provided is inaccurate and needs to be updated.
Very nice NPS advertisement. Avoid NPS. You will be scammed to buy annuity at a hilarious 5-6% rate of your 40% corpus. The whole game is to make your hard-earned money available to this 'annuity providing' fund houses at an extremely cheap rate.
@@nikhil10ful Even considering that small amount you save on tax, cannot justify the crappy 2-3% yield you get on annuity. This is a scam for the fund houses to offer a handsome NIM for their parent Banks and Insurance companies.
Namaste ji, even I was having same feeling for NPS. Then when I met my Financial planner, he said there is nothing like good or bad investment. We need to choose products which may work for us. I see a point why people want to withdraw all 100%. However we must understand the main purpose of this product is to assure your survival during retirement. Not all will be blessed with good health and good people around them. At least 40% is locked to provide you bare minimum, especially if you have cheaters or needy people around you. I know a case where the family said that they must take very good care of their granny as the pension she was drawing was going towards the house EMI they were staying in. Consider she was given lumpsum amount instead of pension, not sure she would be cared enough. And I totally agree - Annuity Fund houses rate are not even competitive enough to the market standards. However, I hope with the competition in market, we might expect something good in coming years.
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I admire Gajendra ji, the way he emphasises on COMPOUNDING. He is definitely pounding the most out of compounding. He has also demonstrated amazing knowledge on various products, be it NPS or Mutual fund or any kind of investments. Thank you Gajendra ji for sharing so much of data openly with everyone. You are a bless and I reciprocate many more blessings to you.
I see a point why people want to withdraw all 100%. However we must understand the main purpose of this product is to assure your survival during retirement. Not all will be blessed with good health and good people around them.
At least 40% is locked to provide you bare minimum, especially if you have cheaters or needy people around you.
I know a case where the family said that they must take very good care of their granny as the pension she was drawing was going towards the house EMI they were staying in. Consider she was given lumpsum amount instead of pension, not sure she would be cared enough.
You can keep 75% equity after the age of 50 also!
The rule of reducing equity by 2.5% every year has gone from 2022.
Oh.!🎉
This is a valuable discussion. I have invested voluntarily in 2019 and ramped up my contribution upwards of 30 lkh and currently it's showing above 55lkh at 16% Xirr. I am expecting only 10 to 12 % returns hereon for next 10 years.
bro why are you wasting your money in nps
@@Peacetoeveryone95probably u don’t understand nps
@@annamalaian0711 probably you don't understand annuity
@Peacetoeveryone95 Bhai I have invested only some part of my portfolio in NPS.
My feeling is that most advisors don't recommend this scheme as the commission is very low. The returns generated in NPS are quite decent, the mandate given by government is safety of capital. And 60% maturity amount without tax cannot be ignored.
@@shejwalkarhemant3110 bro you are loosing 40% of the total amount, have anyone know about annuity scheme, it's called "pension" but the reality is you get only the interest as pension and that too it's constant for the rest of the life without inflation accounted
There is also SLW systematic lumpsum withdrawal scheme in NPS which is not discussed.
Also minor NPS Vatsalya can be regularised in to regular NPS account after the age of 18 .
In active choice, I think you can keep 75% equity till the end. Correct me if I am wrong here!
You are correct.
Very information session expecting such more session in near future
Chose an experienced Expert in future. This is a layman
Invest 100% in the equity tier 2 account, and finally transfer to tier 1 account. This is applicable for person who availed all the tax benefits options available in NPS.
Additionally investors can now invest 100% in Equity in the Tier 2 account. It appears you guys made this video in haste without even checking the current options and rules!
Very good useful session
Anna, who is this expert? These are the basics we expect experts to know. It was such a big change and tour expert doesn't even know that we are go 75% equity under active choice until age 75? And these people are EXPERTS and they plan for others?
I am a home maker and i wanted pension so started searching then found nps in 2022 i started investing
Under active choice the allocation for equity is 75% max and not 50% if you are even 55 or 60 years of age
It’s not 10 percent of CTC ; it’s 10 percent of basic . 50 lakhs can’t be basic component
I have both T1 and T2 accounts but disappointed to know tax for T2 is income tax slab rate.
Think of the Tier 2 account like a Savings Account. The only difference is that rather than getting approx. 4 to 5% in a Savings Account you are now getting almost 12 to 14% in the Tier 2 Account. Similar to the Savings Account, any interest earned is added to regular income.
Withdraw money post retirement so you don't hv income and no need to pay taxes or else transfer to tier 1 account withdraw 60%. Rest which you would hv paid as taxes get annuity😅
@samirfaras5145 if we transfer to T1 ,still tax applicable?
@@VijayT-yu1bx no tax when transfer from tier 2 to tier 1.
@@VijayT-yu1bxIf you transfer then tax is applicable as per T1 when withdrawal since for transferring there is no tax
Hv been trying to withdraw NPS after 60 big hassle n no help from anyone whatsoever am struggling to get hard earned money don't know what to do
Don't understand what's the difficulty are you facing?
Ultimately, government will scrap Annuity compulsion and offer SWP from NPS nav itself
Hope is a dangerous entity..
We can keep the 60% in NPS and do a SWP from there, we get an advantage of low expense ratio as compared to an SWP from a normal MF
Why can't we just do a SWP from NPS corpus itself? At least the 60% portion ?
You can do..
The mandatory reduction of 2.5% in Equity past the age of 50 was removed years ago and changed to 60 years. Hence investors can now hold 75% in Equity under Active Choice until the age of 60. The information provided is inaccurate and needs to be updated.
Simplify withdrawal process to attract commonmen
What happens to taxation if we switch corpus from tier 2 to tier 1
Fully taxable on the day of transfer. At your Marginal rates😢
I feel its still grey area , as some say its non taxable if u tranfer from tier 2 to tier 1 before 60 yr
No clarity on that.. I am still trying to find a genuine source that says it will be taxable or otherwise..
U can go through et now video on taxation of nps . Aziz feroz says that taxation wont apply if u transfer corpus from tier 2 to tier 1 before 60 yrs
@@akshaypatil2018 I agree. I heard this from a few experts. But I am trying to find proper document evidence. Tax men are notorious in our country.
annuity scheme is a big scam
Very nice NPS advertisement. Avoid NPS. You will be scammed to buy annuity at a hilarious 5-6% rate of your 40% corpus. The whole game is to make your hard-earned money available to this 'annuity providing' fund houses at an extremely cheap rate.
What about the upfront 30% tax benefit you get when you invest in nps? And if you calculate 12 -15% returns on that 30% .. what that amount would be?
@@nikhil10ful Even considering that small amount you save on tax, cannot justify the crappy 2-3% yield you get on annuity. This is a scam for the fund houses to offer a handsome NIM for their parent Banks and Insurance companies.
Namaste ji, even I was having same feeling for NPS. Then when I met my Financial planner, he said there is nothing like good or bad investment. We need to choose products which may work for us. I see a point why people want to withdraw all 100%. However we must understand the main purpose of this product is to assure your survival during retirement. Not all will be blessed with good health and good people around them.
At least 40% is locked to provide you bare minimum, especially if you have cheaters or needy people around you.
I know a case where the family said that they must take very good care of their granny as the pension she was drawing was going towards the house EMI they were staying in. Consider she was given lumpsum amount instead of pension, not sure she would be cared enough.
And I totally agree - Annuity Fund houses rate are not even competitive enough to the market standards. However, I hope with the competition in market, we might expect something good in coming years.
No knowledge guest.
It just gives fixed annuity rate.
This is not inflation adjusted .
So 20000 on first month of retirement and same 20000 after 15-20 years also
also at 6% only
@@Peacetoeveryone95Not even 6%. when I checked last time it was around 3% i remember. Such a horrendous scam, this annuity is