NPS Vatsalya Scheme, a retirement saving sacheme overseen of the Pension, Fund Regularity and Development Authority (PERDA), is designed to empower parents to start saving for their child’s future financial security. By investing in NPS Vatsalya Scheme, parents can create a solid financial foundation that will help their child achieve their retirement goals.
NPS Vatsalya Scheme is all set to launch by today by Finance Minister Nirmala Sitaraman. She had announced the scheme in the Union Budget almost two months back on July 23. The investment in NPS Vatsalya Scheme will helps parents to start financial planning for their children to ensure long-term wealth and this scheme specially focusing on those below 18 years of age.
Pension Fund Regularity and Development Authority (PFRDA). managed this scheme in which parents can begin saving for their child’s retirement fund. This scheme helps them to build financial foundation that will support their child’s future needs.
How much can you Invest in NPS Vatsalya Scheme?
NPS Vatsalya: A secure investment for your child’s future. Start with just ₹1000 annually and watch their saving glow. Flexible contributions and potential for significat returns make it a wise investment choice.
Eligibility:-
- Citizen of India and child should be under the age of 18 years.
Benefits of NPS Vatsalya Scheme
- Protection against long term financial security and uncertainity.
- Teaching pension planning (Financial responsibilty).
- Encouragement of long term investment.
- Flexibility in future financial planning.
- Benefits of compared intant with long-term investment.
Withdrawal Rules of NPS Vatsalya Scheme before child turning 18
After turning 18, NPS Vatsalya subscribers can seamlessly transition to a regular. All citizen NPS account. Ensure a smooth switch by completing the KYC process within three months. When ready to exit, choose between a lump sum withdrawal upto 2.5 lakh or a combination of a lump sum and an annuity plan. The annuity ensures a steady income stream, while the lump sum provides flexibility.
NPS Vatsalya Scheme rules in unfortunate cases of death
In case of a subscribers’s death, the entire corplus is returned to the guardian. If the guardian passes away, a new guardian can be registered. If both parents are decreased, the legal guardian can registered. If both parents are deceased, the legal guardian can continue managing the amount until the subscribers turns 18.
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