National Pension Scheme (NPS) for NRI in 2024

National Pension Scheme (NPS) tailored for Non-Resident Indians (NRIs) is a government-backed pension plan that offers a unique opportunity to secure their financial future with flexible pension solutions. Here you will learn how NPS offers a structured and tax-efficient investment option for comfortable retirement planning.

Read more
  • Get Returns as high as 22%

  • Tax Free Regular Income

  • Peaceful Post-Retirement Life

Top Performing Pension Plans for NRI's
Invest ₹18k/month & Get ₹2 Lakh* monthly pension
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
Pension Funds
Pension Funds Most Popular
Fund Name
AUM
Returns (in %)
3 Year
5 Year
10 Year
11,380 Cr
Returns
24.19%
Highest Return
Returns
22.82%
Returns
21.83%
Get Details
5,651 Cr
Returns
29.46%
Highest Return
Returns
26.41%
Returns
19.59%
Get Details
4,058 Cr
Returns
25.25%
Highest Return
Returns
18.66%
Returns
19.31%
Get Details
5,938 Cr
Returns
24.34%
Highest Return
Returns
18.17%
Returns
18.75%
Get Details
35,583 Cr
Returns
21.65%
Highest Return
Returns
18.59%
Returns
18.27%
Get Details
12,743 Cr
Returns
17.96%
Highest Return
Returns
16.46%
Returns
15.78%
Get Details
2,949 Cr
Returns
18.59%
Highest Return
Returns
15.65%
Returns
14.61%
Get Details
NPS Calculator

Your Age

18 Years 59 Years
Enter Your Age

Monthly Investment

₹500 ₹10L
Enter Investment Per Month

Expected Return on Investment

5% 15%
Expected Return on Investment

Percentage of Corpus Allocated for Pension

40% 100%
Enter Corpus Percentage

Expected Return from Pension

5% 15%
Enter Annuity Return
₹0
Your Monthly Pension
₹0
Your Monthly Pension
Your Pension Calculation
Your Pension Calculation
Total Investment
Returns Earned
Maturity Amount
Maturity Amount split (Lumpsum & Pension)
60%
Lumpsum Amount
At the age of 60 Yrs
40%
Pension Wealth
At the age of 60 Yrs

What is the National Pension Scheme (NPS) for NRI?

The National Pension Scheme (NPS) is a voluntary, long-term pension plan offered by the Government of India that provides financial security during your golden years. This scheme offers a structured and tax-efficient way to build a retirement corpus for NRIs.

NPS offers a mix of equity, fixed deposits, liquid funds, and government funds for investment. Contributions are invested with the aim of providing stable returns in the long run. NRIs can avail of tax benefits under certain conditions and have the flexibility to choose their fund manager and investment allocation within NPS.

Features of the National Pension Scheme for NRI

The NPS, a government-sponsored pension scheme, offers the following key features:

Features Description
Two Tier Structure Tier I (mandatory) for pension, Tier II (optional) for investment
Investment Options NRIs can choose between equity, fixed deposits, government bonds, and alternative investment funds within the NPS framework.
Low Cost Fund management charges as low as 0.01%
High Returns Market-linked with average annual returns of 9% - 15% p.a.
Tax Benefits Tax benefits under Section 80CCD(1), 80CCD(2), and 80CCD(1B) on Tier I contributions in India
Flexibility & Portability Choose investment mix, switch PFM, portable across jobs & countries
Minimum Contribution
  • Rs. 500 for Tier I
  • Rs. 1,000 for Tier II
Withdrawal Options 40% annuity, 60% lump sum (at 60), more flexibility based on corpus & age
Investment Choices Active (choose asset allocation) or Auto Choice (age-based)
Entry Requirement 18-70 years, NRI with KYC compliance
Contribution Sources NRE or NRO account

Eligibility Criteria to Invest in NPS

To invest in the National Pension System (NPS), individuals must meet certain eligibility criteria:

  • Age: Individuals aged 18 to 60 years are eligible to invest in the National Pension System (NPS).

  • Citizenship: Both Indian residents and non-residents are allowed to participate in NPS.

  • KYC Compliance: Investors must complete the Know Your Customer (KYC) process to be eligible.

  • Unique Permanent Retirement Account Number (PRAN): Investors need to obtain a PRAN to open an NPS account.

What are the Benefits of NPS for NRI?

The following key benefits of the National Pension Scheme (NPS) for the NRI:

what are the benefits of nps for nriwhat are the benefits of nps for nri

  • Invest in India: NPS offers NRIs hassle-free access to investment options in India.

  • Market-Linked Returns: Build a corpus in long-term with market-linked returns.

  • Tax Advantages: Enjoy tax benefits of up to Rs. 2 lakhs on NPS contributions as an NRI.

  • Guaranteed Pension: At retirement, 40% of your savings becomes an annuity plan.

  • Retirement Security: Build a robust retirement corpus with NPS, ensuring financial security.

  • Low-Cost Structure: Enjoy higher returns with minimal charges, maximizing overall gains.

  • Lump Sum Benefits: You can take 60% of your corpus as a lump sum on retirement to purchase that dream house, or car, or go on a vacation.

  • Easy Repatriation: Repatriate NPS proceeds effortlessly when the need arises.

  • Online Management: Efficiently manage NPS accounts online, offering convenience.

What are the Tax Benefits of NPS for NRI

The tax benefits on gain and income earned from your investments in the National Pension Scheme (NPS) for NRIs are listed below:

  1. Employee Tax Benefits for Self-Contribution:

    • Deduction of up to 10% of salary (Basic + DA) under Section 80CCD(1), max Rs. 1.5 lakh (Section 80CCE).

    • Additional Rs. 50,000 deduction under Section 80CCD(1B) within Rs. 1.5 lakh limit.

  2. Employer Contribution Tax Benefits:

    • Deduction up to 10% of salary (Basic + DA) or 14% (if by Central Govt.) under Section 80CCD(2).

    • Beyond Rs. 1.5 lakh limit under Section 80CCE.

  3. Tax Benefits for Self-Employed Individuals:

    • Up to 20% deduction of gross income under Section 80CCD(1).

    • Additional Rs. 50,000 deduction under Section 80CCD(1B) within Rs. 1.5 lakh limit (Section 80CCE).

  4. Tax-Exempt Partial Withdrawals:

    • 25% of self-contribution exempt from tax under Section 10(12B), following PFRDA criteria.

  5. Tax Exemption on Annuity Purchase:

    • Tax exemption on annuity purchase or superannuation at 60 years (Section 80CCD(5)).

    • Subsequent annuity income taxed under Section 80CCD(3).

  6. Tax Advantages on Lump Sum Withdrawal:

    • Section 10 grants tax exemption on 60% lump sum withdrawal at 60 years or superannuation.

  7. Corporate/Employer Tax Breaks:

    • Employer's NPS contribution deductible, up to 10% of employee's salary (Basic + DA) as 'Business Cost' under Section 36(1)(iv)(a).

benefits-of-npsbenefits-of-nps

What are the Different Types of NPS Accounts for NRI?

National Pension Scheme offers two types of NPS accounts to NRI investors:

  1. Tier I NPS Account:

    • Mandatory retirement account.

    • Maturity amount at age 60.

    • Partial withdrawals are allowed after age 50.

  2. Tier II NPS Account:

    • Voluntary savings account.

    • Withdrawal anytime.

What is the Difference Between NPS Tier-I And Tier-II Accounts for NRI?

This concise table highlights key differences between NPS Tier-I and Tier-II accounts for NRIs in Singapore:

Aspect NPS Tier-I Account NPS Tier-II Account
Accessibility Restricted, primarily for retirement savings. Flexible, allows withdrawals anytime.
Withdrawals Limited, permitted under specific conditions. Unrestricted, can withdraw anytime.
Tax Benefits Offers tax benefits under Section 80CCD. No additional tax benefits beyond standard.
Purpose Intended for long-term retirement planning. Suitable for short-term financial goals.
Minimum Contribution Mandatory regular contributions. No mandatory contributions, flexible deposits.
Account Type Mandatory for all NPS subscribers. Optional, can be opened alongside Tier-I.
Portability Portable across employers and locations. Portable but linked to Tier-I account.
Investment Options Limited choice with a mix of equity and debt. Broader investment choices including equities.
Lock-in Period Generally, funds are locked until retirement. No lock-in period, can withdraw anytime.

How Can an NRI Invest in NPS?

The Pension Fund Regulatory and Development Authority of India offers both an online and offline process to open an NPS account. Let's take a look at how to open an NPS account.

  1. Online Process

    • Visit the official NPS website.

    • Complete the online registration process.

    • Provide necessary KYC documents.

    • Choose the preferred NPS fund and contribution amount.

    • Make an online payment through available options.

  2. Offline Process

    • Visit a designated NPS Point of Presence (PoP) in Singapore.

    • Fill out the NPS registration form.

    • Submit KYC documents along with the form.

    • Select the desired NPS fund and contribution amount.

    • Make the payment through the PoP in person.

Invest More Get More
Invest ₹10K/Month YOU GET ₹1.5 LAKHS* MONTHLY PENSION View Plans
Invest ₹7K/Month YOU GET ₹1 LAKHS* MONTHLY PENSION View Plans
Invest ₹5K/Month YOU GET ₹75 THOUSAND* MONTHLY PENSION View Plans
standard T&C Apply *

Premature Withdrawals Under the National Pension Scheme for NRI

  1. Withdrawal at 60 Years:

    • At age 60, withdraw 60% of your NPS scheme savings.

    • Use the remaining 40% for purchasing an annuity.

    • Opt for a full lump sum withdrawal if your pension savings are ₹5 lakh or less.

  2. Pre-60 Years Withdrawal:

    • Before turning 60, utilize at least 80% of your accrued pension corpus to buy an annuity for monthly income.

    • If your total corpus is ₹2.5 lakh or less, choose a 100% lump sum withdrawal.

  3. Death of Subscriber:

    • In case of the subscriber's demise, the entire corpus is transferred to the beneficiary or legal heirs.

    • Required documents include beneficiary's ID, death certificate, etc.

Rules of Equity Allocation for NRI

  • The NPS scheme divides investments into different asset classes. Asset Class E emphasizes equity, allowing up to 50% allocation.

  • Choose between auto and active options: auto choice aligns with age for risk profile, while active choice lets you personally allocate investments.

  • Asset Class E focuses on equity, with 50% maximum allocation.

  • Two choices: auto assigns based on age for risk, active lets you decide where to invest.

NPS vs. Other Tax-Saving Investments

Let us look at the comparison between the NPS scheme and other tax-saving investments for NRI:

Investment Interest Lock-in Period Risk Profile
NPS 9%-12% Till retirement Market-related risk
ELSS 12%-15% 3 years Market-related risk
PPF 7.1% (Guaranteed) 15 years Risk-free
FD 7%-9%(Guaranteed) 5 years Risk-free

*The taxability on NPS scheme withdrawals is subject to change.

How an NRI Can Login to a National Pension Account for the First Time?

  • Visit the official National Pension System (NPS) website.

  • Click on the "New Registration" or "Sign Up" option.

  • Fill in your personal details, including your Permanent Account Number (PAN) and valid email address.

  • Choose a secure password for your NPS account.

  • Verify your mobile number through the OTP sent to you.

  • Provide your bank details for contributions and withdrawals.

  • Upload the required KYC documents.

  • Review the information entered and submit the registration form.

  • Once approved, you will receive a confirmation email.

  • Use your PAN and chosen password to log in to your NPS account for the first time.

Conclusion

National Pension Scheme (NPS) presents a strategic and flexible investment option for retirement planning for NRIs in Singapore. With its tax benefits, diverse investment options, and portability, the NPS offers a customized solution to secure financial well-being after retirement. NRIs can leverage this robust pension scheme to build a sustainable and secure future, making informed investment choices to suit their individual financial goals.

FAQ's

  • How much monthly pension will I get from NPS?

    The monthly pension an NRI gets from NPS depends on several factors:
    • Corpus at retirement (total amount accumulated in your NPS account after years of contributions and investment returns)

    • Annuity payout option

    • Annuity period

    • Age at retirement

    • Investment performance

  • What is the benefit of NPS?

    The benefits of National Pension Scheme (NPS) for NRIs are listed below:
    • Secure your future: Build a retirement corpus with market-linked returns.

    • Save on taxes: Get deductions under Sections 80C and 80CCD(1B).

    • Enjoy lifetime income: Choose guaranteed pension after retirement.

    • Flexible investment: Control your risk with Active or Auto Choice Funds.

    • Simple & portable: Open & manage accounts online, even across borders.

    • Repatriate funds: Access lump sum and pension easily from abroad.

  • Can I invest more than Rs. 50000 in NPS?

    Yes, NRIs can definitely invest more than Rs. 50,000 in NPS. There are no upper limits on contributions for NRIs. This flexibility allows NRIs to take full advantage of the scheme's tax benefits and build a substantial retirement corpus.
  • What is the NPS interest rate?

    The NPS doesn't technically have an interest rate for NRIs or any investor, as your contributions are invested in market-linked instruments like equities and bonds. The returns your NPS account generates depend on the performance of these underlying assets.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

Secure Your Retirement Today
Start Investing ₹18,000/month
Get Pension ₹2,00,000/month+
Including Life Cover
View Plan
Pension Plans
+Standard T&C Applied
Secure your Retirement today!
START INVESTING
₹6,000/month
GET PENSION
₹60,000/month+
Heart
INCLUDING LIFE COVER
+ Standard T & C Apply*
Pension Calculator
Pension Calculator
How much do you need to save for retirement?
₹ 2,00,000
₹ 3,00,000
₹ 5,00,000
Monthly Expenses in 2024
Edit Done
Your expense go up every year by
Today 2024 Your expenses today in 2023, at the age of 34 Yrs
Your expenses in 2043, at the age of 55 Yrs
For a monthly pension of ₹77,300
you need to invest
₹14,300/month
Calculated as per past performance of 15%
View Plan Recalculate?

Pension plans articles

Recent Articles
Popular Articles
Pension Calculator

13 Feb 2024

Pension calculator helps you calculate the amount you could
Read more
NPS vs ULIP - Which One Is Better?

10 Oct 2023

NPS (National Pension System) and ULIP (Unit Linked Insurance
Read more
Best Mutual Funds for Retirement

21 Sep 2023

Planning for a secure and comfortable retirement is a financial
Read more
Mahila Samman Savings Certificate (MSSC)

04 Sep 2023

The Mahila Samman Savings Certificate (MSSC) or Mahila Samman
Read more
Single-Premium Pension Plan

28 Aug 2023

A Single-Premium Pension Plan is a retirement savings option
Read more
Top 15 Pension Plans in India
The Pension Plan, also known as a Retirement Plan is the best investment instrument allowing individuals to build
Read more
Sevarth Mahakosh
Sevarth Mahakosh Portal is a one-stop solution for all state government employees' financial transactions and
Read more
NPS Tier 2 Account Advantages and Disadvantages
The National Pension Scheme (NPS) is a government-backed initiative designed to safeguard investors' interests
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL