Any plan, fund, or scheme that provides retirement income is referred to as a pension fund, also known as a superannuation fund in some countries. Pension funds are collections of monetary contributions from pension plans established by employers, unions, or other groups to cover the retirement benefits of their members or employees.
The current NPS interest rate on contributions is between 8 and 10%. The National Pension Scheme account can be opened by any Indian citizen between the ages of 18 and 60. The National Pension Scheme, which is governed by PFRDA, matures at age 60 and may be extended up to age 70.
When a subscriber reaches 60 years old, their NPS reaches maturity. Vineeth will be able to contribute to the plan over the next 36 years and anticipates an annual return on investment (ROI) of 9%.
SBI Pension Fund (9.71%), HDFC Pension Fund (14.87%), and UTI Retirement Solutions (11.96%) have the best NPS Tier 2 Equity fund returns over the course of one year, three years, and five years, respectively.
As you can see, NPS is a fantastic way to save for retirement. If your goal is to save money for other things, like your children’s education or your daughter’s wedding, it might not be the greatest investment strategy. PPFs outperform NPSs as the optimal investing strategy for all of these requirements.