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NPS Contribution: Many people remain worried about money after retirement, but by keeping money in NPS, your funds remain absolutely safe. Many people have this question in their mind whether they can invest money in NPS fund after changing job or going abroad or not, let us tell you about it. In NPS, the account always remains active with PRAN number. Change job or go abroad, money remains safe. You get tax free amount after maturing at 60 years, you can also buy annuity.
NPS: Changing jobs or going abroad to increase salary has become a common thing, but every person is worried about retirement planning as to how to save as much money as possible. This question comes in the mind of many people whether the money in NPS will remain yours or not if you change job or go abroad. National Pension System i.e. NPS is such a plan which follows you at every step, whether you change job or shift abroad, this account remains active and the money remains safe.
Its secret is the unique permanent retirement account number called PRAN, this number never changes, hence there is no need to open a new account.
Changing job does not affect NPS funds.
Suppose you are joining a new job and the new employer provides corporate NPS, then just link your old PRAN and the work will be done. If you do not give, then you can deposit the money yourself through e-NPS portal or bank. According to the report of Moneycontrol, Ajay Kumar Yadav, Group CEO of Wise Fincirc, says that due to PRAN, the account always remains valid. Changing job does not affect the NPS corpus. The money remains with the fund manager of your choice and the asset allocation also remains the same. If the salary increases in the new job, then increase the voluntary contribution. With this, the goal of retirement will be achieved easily and quickly.
Can I invest money in NPS when I go abroad?
Now talking about going abroad, even if you become an NRI, you can put money in NPS, you should have an NRE or NRO account, the contribution will be in rupees only, update your KYC by providing passport, foreign address proof and FTCA CRS declaration. If you have permanently settled abroad then the account can remain operational for 60 years. After that withdraw the money in the bank. According to Ajay Kumar Yadav, this is the easiest, cheapest and systematic retirement product. Both residents and NRIs can use it.
NPS is completely portable, there is no problem in getting transferred to any corner of the country, it also remains your companion in the path of career and increases your savings. NPS becomes mature at the age of 60 years. 60% of the money is received in lump sum and is tax free and the remaining 40% has to be purchased as annuity. If you withdraw before 60, you can take 20 percent in lump sum, but annuity has to be made from 80 percent. NPS is the best option for retirement.
