What are the key features of the NPS Vatsalya pension plan launched by Nirmala Sitharaman
Nirmala Sitharaman introduced the NPS Vatsalya pension plan aimed at children.
The NPS Vatsalya pension plan introduced by Nirmala Sitharaman offers several key features aimed at securing the financial future of children. Here are some of its main features:
- Flexible Contributions: Parents or legal guardians can make contributions towards the child's pension fund as per their financial capabilities.
- Choice of Pension Fund Manager: Subscribers have the option to choose from various pension fund managers to invest their contributions.
- Tax Benefits: Contributions made towards the NPS Vatsalya plan are eligible for tax benefits under Section 80C of the Income Tax Act.
- Vesting Age: The plan matures when the child reaches 60 years of age, providing financial security during their retirement years.
- Annuity Options: Subscribers can choose from various annuity options to receive regular income post-retirement.
- Partial Withdrawals: The scheme allows for partial withdrawals for specific financial needs like education, marriage, etc.
- Nomination Facility: The plan offers nomination facility ensuring the benefits are transferred to the nominee in case of the subscriber's demise.
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