Savings for the elderly
India has been extensively romanticized as a nation that venerates the elderly. But times are changing; prevailing economic dynamics and inflation have effected fragmentation of undivided families, often leaving the old to manage life on their own. In contemplation, this is no new concept to Indians; “Vanaprastha” or the stage of the forest dweller had been in existence since the ancient times. Whilst forest dwelling in the olden days did not require extensive financial arrangements, living expenses for the aged has gone up the roof in the 21st Century.
A well etched financial planning is essential for smooth transition through the twilight years, to guarantee timely, effortless and affordable access to a dignified lifestyle and good healthcare facilities among others, ensuring graceful ageing with reduced financial dependency on children, relatives and others.
Where India stands in terms of Retirement readiness
India is found to be more than wanting in terms of retirement preparedness for the seniors. According to the reports published by Natixis Global retirement index 2016, India ranks last in a list of 43 countries from across the world, as evaluated on the basis of key factors, namely Material well-being, Health, Finances in Retirement and Quality of life.
Here, Finances in Retirement reflects the state of access to quality financial services and the savings facility for the aged, in India. At a score of 49%, there is ample headroom for improvement; not that India is deficient of schemes for retirement readiness.
The National Pension System or NPS, regulated by the Pension Fund Regulatory Development Authority (PFRDA), India, was introduced in 2004 as a tax-efficient retirement savings product with investor-friendly fund management charges. All Indian citizens between the age of 18 to 60 are eligible register and contribute through the scheme.
NPS – Corporate Solutions from the house of CAMS
The NPS – Corporate Solutions is a retirement solution scheme hosted by CAMS, designed exclusively to be adopted by Corporates, for helping their employees build financially secure futures through retirement savings via NPS. With the elimination of filing returns, assisting inspections / audits, scrutiny, penalties, notices, NPS – Corporate Solutions is less of an administrative burden and more of the ideal employee benefit initiative, providing for a dependable pension system for those in Non-Government and informal sectors.
NPS – Corporate Solutions facilitates co-contribution by the employer and employee, with effective tax benefits for both parties.
NPS could be run parallel to Superannuation, Gratuity, PF, EPF and any other pension schemes offered to the employees of organized entities.
NPS Services for individual investors
CAMS with its penchant to simplify processes for the benefit of the end-customers, hosts conventional, offline NPS Services as well as the online based eNPS services, with Aadhar based account opening facilities.
Authorized by PFRDA, CAMS offices across India act as approved Points of Presence Service Centers (POP-SP), for the benefit of those with little or no access to online services. For those who prefer digital services, CAMS facilitates online payment of NPS contribution, even in case of accounts that were opened manually.
CAMS also hosts Transaction Acceptance, Life cycle Contribution Remittance (Cash /Cheque/ECS) and Subscriber Account services for subscribers of PRAN (Permanent Retirement Account Number), allotted after successful payment of initial contribution through NPS.
Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFC’s and Alternate Investment Funds. To know more visit www.camsonline.com