National Pension System
NPS Vatsalya – A NPS scheme for Minor
Why opt for NPS Vatsalya?
- Long-term Financial Security
- Lower Contribution Amounts
- Teaching Financial Responsibility (Concept of Pension Planning)
- Protection Against Uncertainty
- Flexibility in Future Financial Planning
- Encouragement for Long-term Investment
- Benefits of Compound Interest
Documents required for NPS Vatsalya Account (AOF)
NPS Vatsalya – Contribution
Account Opening contribution: Min Rs. 1,000 /- and Max no limit.
Subsequent contribution: Min. Rs. 1,000 /- p.a. and Max no limit.
NPS Vatsalya – Withdrawal
Withdrawal up to 25% of contribution after lock-in-period of 3 years allowed for education, specified illness and disability. Max three times.
Upon attainment of age of 18 years, Seamless shift to NPS Tier – I (All Citizen).
NPS Vatsalya – Exit
Exit allowed on attainment of 18 years of age
- Corpus more than Rs. 2.5 lacs: 80% corpus is utilized for purchase of annuity and 20% can be withdrawn as lump sump
- Corpus less than or equal to Rs. 2.5 lacs: entire corpus can be withdrawn as a lumpsum.
On Death, entire corpus would be returned to the guardian.
Illustration of NPS Vatsalya return prospect
Accumulation of Pension Wealth |
||||
| Amount and Tenure of Investment with NPS Vatsalya | Corpus after 18 years (at assumed 10% rate of return) | Corpus at 60 Years (in Crores) | ||
| (Rate of Returns) | ||||
| 10% | 11.59%* | 12.86% # | ||
| Contribution - Rs. 10,000 per year Duration of contributions - 18 years | 5,01,591/- | 2.75 | 5.97 | 11.05 |
Disclaimer - This is for illustration purposes only
Calculations are based on historical data and estimates and the actual returns may vary.
*The historical average return since inception under NPS with default weights (50% equity, 30% Corp Debt and 20% G-Sec) is 11.59% as on 19th Jul 2024.
#The historical average return since inception under NPS with 75% weight to equity and 25% weight to G-Sec is 12.86% as on 19th Jul 2024.
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