5 Reasons Why You Must Invest In NPS For A Peaceful Retirement

One of the largest challenges of private-sector employees, unlike government employees who receive pensions after retirement, is to maintain a means of monthly income if their salary income ceases. So, if you're an employee of a corporation or company, it's very essential that you consider your retirement planning asap. You can comfortably accomplish your target with lower investments if you plan early since what makes investment returns work better is patience. The interest rate is yet another factor in pension management. The interest rate on fixed deposits (FDs) has already fallen too close to 5-6 per cent with the drastic rate cuts by the Reserve Bank of India (RBI).

So, at the time of retirement, the rate of interest applicable is unsure. The key phase in retirement planning is to measure the amount of pension necessary immediately after retirement to be preserved. The key factors influencing the requirement for a pension are inflation and duration of employment prior to retirement. That being said, if you start saving early and investing in the right way, creating an adequate retirement corpus is not an insurmountable job. And the National Pension System (NPS) is a very strong instrument from which you can accumulate or build a savings corpus for your retirement. But what makes it the only consideration here, let's find out.

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