Worried about post-retirement security?

 Are you seeing yourself in a line of walk-in interviews post your retirement? Read this insightful article from CAMS on how the National Pension System can help make your retired life financially secure.


The United Nations Population Division states that the world’s life expectancy will reach 75 years by the year 2050 from the current level of 65 years. Rising cost of living, inflation and life expectancy will make retirement planning an essential part of life. Retirement planning involves disciplined saving and careful investment strategies to build a sufficient retirement corpus. While everyone yearns for financial stability post retirement, this is possible when you start planning at early stages of your life. Remember the famous quote “If you fail to plan, you plan to fail”. Surely we would not want to end up there!!

With an aim to inculcate the habit of savings for retirement, the Government of India has introduced the National Pension System (NPS). NPS is voluntary and is a defined contribution retirement savings scheme designed to enable subscribers to make optimum decisions regarding their future through systematic savings during their working life. It is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India.


Under the NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines in to the diversified portfolios comprising of government bonds, bills, corporate debentures and Equities. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.

At the time of normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme to “Purchase a life annuity” from a PFRDA empanelled life insurance company apart from withdrawing a part of the accumulated pension wealth as lump-sum, if they choose so.

Salient features of NPS, which offer the below irresistible benefits:

  •  Tax Savings: NPS allows you additional tax deduction on saving of Rs. 50,000 u/s 80CCD (1B).
  • Start Early: All Indian citizens from 18 years to 60 years can open NPS accounts.
  • Regulated: NPS is regulated by Pension Fund Regulatory and Development Authority (PFRDA) which means that your money is “Safe”
  • Flexible: Subscribers can switch from one investment option to another or from one fund manager to another, returns being totally market-related (under regulatory restrictions).
  • Low cost/Simple: NPS is easy to operate and a low cost investment tool.


How to invest:

The first step to enrolment is to apply for a 12 digit, Permanent Retirement Account Number (PRAN) by submitting a photograph, mandatory details and KYC requirements. Once registered, the PRAN kit consisting of a PRAN card, Subscriber report, I-Pin (Internet Personal Identification number) and T-Pin (Telephone Personal Identification number) will be sent to the subscriber.

The following services are accepted at the CAMS front offices:

  • Subscriber registrations
  • Accept Contributions
  • Withdrawal Requests
  • Scheme Change Requests
  • Subscriber modifications
  • I-Pin/T-Pin reissues
  • Subscriber location shifting
  • Subscriber PRAN reprint request

CAMS accepts the above service requests 6 days a week. (Monday to Friday between 9 am to 5 pm and on Saturday between 9 am to 1 pm)



CAMS (Computer Age Management Services) is India’s premier Mutual Fund Transfer Agency serving over 60% of assets of the industry across 15 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. Besides Mutual Funds, CAMS is a service partner to leading Insurance companies, Banks, NBFCs and Alternate Investment Funds.

CAMS has a variety of information available in its website and also shares excellent inputs on Investments and Savings in the Facebook Page.

Like us on https://www.facebook.com/CAMSRTA


Published by

Sudarshan Ranganthan

Breaths Investments, Suggests Wealth Creation Ideas, Lives on Law Of Attraction

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