Sir. (1) There is NO assured pension in government. (2) NPS annuity is not inflation-linked so if the monthly annuity amount remains the same till the death which becomes half every 10 years due to inflation.
During withdrawal at age 60; NPS lets you withdraw 60% of capital as cash. Rest 40% goes towards buying an annuity because retirement pension is its main motto. I can recall that the almost the whole amount is tax free. Only the income from annuity is taxable under income bracket. For any equity MF, you will have to pay 10% as LTCG tax. NPS is still one of the best out there. It's a personal view. Everyone will have their own thoughts around NPS.
@@SPR632 (1) Forced annuity is the worst part of NPS. It doesn't cover spouse in most options and it's not inflation linked. One gets better reutns if he/she puts the amount in any hybrid mutual funds. (2)for government employees there is forced purchase of low yielding bonds. In fact, it's misselling the product for the wrong age group. So returns are never better than 9 %. If a person is allowed to invest the same amount in a MF then returns can be two times higher. Over 99 % people have no practical experiences of NPS. The only genuine advice on NPS you get is from Prof M. Pattabhiraman on his channel @freefincal. He is a IIT Madras professor of physics and he is also a personal finance advisor (most trusted). I find his articles most sane and practical on this topic of NPS as he has real time data of his own just like me. We know each other professionally as I am too a scientist and in the same age group (50). It is hard to explan the disadvantages of NPS to young and inexperienced people. I can only sympathathise with people who are investing in NPS. I have no choice as a central government employee. But I see people who have better choices tend to put their money in NPS and then annuity. Annuity only helps the insurance agency. They would love to see you dead sooner and most annuities are designed to keep you poor. freefincal.com You can search NPS or anuity on this site. 🙏
you did not suggest any retirement fund with 5 star rating...could u pls suggest that which are the best retirement funds with high equity and low debt and balanced retirement fund and then also very safe and conservative retirement fund with low equity and high debt instruments...
In India, there are no inflation-linked annuity plans for self and for spouse after the death. The annuity plans currently in the market serves more the insurance companies than the pensioners.
Even term insurance plans are useless. We should have term insurance plans whose sum assured and premium increase at the rate of inflation so that people don't have to run around to find a new term policy every 5 years.
As usual humble and honest assessment from Dhirendra Sir. I am watching his shows for more than a decade now and he never disappoints.
Thank you🙏
Thank you Dhirnder sir. For the informative video.
Always welcome
Sir. (1) There is NO assured pension in government. (2) NPS annuity is not inflation-linked so if the monthly annuity amount remains the same till the death which becomes half every 10 years due to inflation.
During withdrawal at age 60; NPS lets you withdraw 60% of capital as cash. Rest 40% goes towards buying an annuity because retirement pension is its main motto. I can recall that the almost the whole amount is tax free. Only the income from annuity is taxable under income bracket. For any equity MF, you will have to pay 10% as LTCG tax.
NPS is still one of the best out there. It's a personal view. Everyone will have their own thoughts around NPS.
@@SPR632 (1) Forced annuity is the worst part of NPS. It doesn't cover spouse in most options and it's not inflation linked. One gets better reutns if he/she puts the amount in any hybrid mutual funds. (2)for government employees there is forced purchase of low yielding bonds. In fact, it's misselling the product for the wrong age group. So returns are never better than 9 %. If a person is allowed to invest the same amount in a MF then returns can be two times higher. Over 99 % people have no practical experiences of NPS. The only genuine advice on NPS you get is from Prof M. Pattabhiraman on his channel @freefincal. He is a IIT Madras professor of physics and he is also a personal finance advisor (most trusted). I find his articles most sane and practical on this topic of NPS as he has real time data of his own just like me. We know each other professionally as I am too a scientist and in the same age group (50). It is hard to explan the disadvantages of NPS to young and inexperienced people. I can only sympathathise with people who are investing in NPS. I have no choice as a central government employee. But I see people who have better choices tend to put their money in NPS and then annuity. Annuity only helps the insurance agency. They would love to see you dead sooner and most annuities are designed to keep you poor. freefincal.com You can search NPS or anuity on this site. 🙏
Sir is there any option to invest through demat on a daily basis? Kindly suggest if any.
you did not suggest any retirement fund with 5 star rating...could u pls suggest that which are the best retirement funds with high equity and low debt and balanced retirement fund and then also very safe and conservative retirement fund with low equity and high debt instruments...
They have rated both hdfc and icici retirement funds 5* ratings
Correct bro
HDFC and/or ICICI balanced adv funds
In India, there are no inflation-linked annuity plans for self and for spouse after the death. The annuity plans currently in the market serves more the insurance companies than the pensioners.
Even term insurance plans are useless. We should have term insurance plans whose sum assured and premium increase at the rate of inflation so that people don't have to run around to find a new term policy every 5 years.
dhirendra Kumar sir, I am following you since long i would like to hear from you about your investment. which kind of mf you invested, nps, fd etc.
How to invest after retirement, I already retired from service July 2023 at present I willing to invest 500000-.which option are suitable for me.
Capital safety must. Invest in hybrid or debt mutual fund
Balanced advantage
I am confused on weather I should invest in debt as part of long term portfolio. I have been investing for 5 years in mutual fund