Girls Will Get ₹15 to ₹60 Lakhs Under the Central Government’s NPS Scheme

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Girls Will Get ₹15 to ₹60 Lakhs Under the Central Government’s NPS Scheme – Complete Guide

The National Pension System (NPS) is one of India’s most secure and government-backed retirement investment schemes. While it is open to all Indian citizens, many financial planners now highlight that girls and women can especially benefit from NPS, potentially accumulating ₹15 lakh to ₹60 lakh or more by retirement age — depending on the investment amount, tenure, and market performance.

This article gives you a complete 2,000-word guide on how women, including young girls starting early, can take advantage of NPS to build a massive retirement corpus.

1. What is the National Pension System (NPS)?

The National Pension System is a voluntary, long-term retirement savings scheme introduced by the Government of India and regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

The idea is simple — you invest a small amount every month or year during your working life, and when you retire, you get:

  • A lump sum amount (which can be ₹15 lakh, ₹30 lakh, ₹60 lakh, or more)
  • A monthly pension (for lifetime financial security)

It is a market-linked scheme, meaning part of your money is invested in equity (shares), corporate bonds, and government securities. This gives better returns compared to fixed deposits or savings accounts.

2. Why is NPS Especially Good for Girls and Women?

Many families in India still do not plan retirement savings for women, assuming they will depend on their spouse or children later. This can leave women financially insecure.

Here’s why NPS is ideal for women:

  • Low minimum contribution – You can start with as little as ₹500/month.
  • Long-term compounding – Starting at an early age (18–25) means your money has decades to grow.
  • Safe and regulated – Backed by the Central Government and monitored by PFRDA.
  • Tax savings – Women earning salaries or running businesses can save income tax while investing.
  • Independent financial security – You control your own retirement fund, no matter your marital status.

3. How Girls Can Get ₹15 Lakh to ₹60 Lakh from NPS

The amount you get from NPS depends on:

  • Age when you start
  • Monthly or yearly investment
  • Investment growth rate (historically 8–10% per year)

Let’s see three examples for a girl starting at age 21 and investing until retirement at 60:

Monthly Investment Tenure Average Return (9%) Corpus at Retirement
₹1,000 39 yrs 9% ₹15 lakh+
₹3,000 39 yrs 9% ₹45 lakh+
₹4,000–₹5,000 39 yrs 9% ₹60 lakh+

💡 Tip: If you start earlier (e.g., at 18) and increase contributions yearly, the corpus can even cross ₹1 crore.

4. NPS Features at a Glance

  • Minimum entry age: 18 years
  • Maximum entry age: 70 years
  • Two account types:
    • Tier I: Mandatory retirement account (tax benefits, withdrawal restrictions)
    • Tier II: Voluntary savings account (flexible withdrawals)
  • Asset classes:
    • E (Equity) – High growth
    • C (Corporate Bonds) – Moderate growth
    • G (Government Securities) – Safe but lower returns
    • A (Alternative assets) – Small portion for diversification
  • Tax benefits: Up to ₹2 lakh deduction under Income Tax Act

5. Tax Benefits for Girls Investing in NPS

NPS offers triple tax benefits:

  1. Section 80CCD(1) – Up to ₹1.5 lakh deduction (part of Section 80C limit)
  2. Section 80CCD(1B) – Extra ₹50,000 deduction (over and above 80C)
  3. Employer Contribution Benefit – If your employer contributes to your NPS, you can claim it as a separate deduction (up to 10% of salary).

Example:
If a working woman earns ₹8 lakh/year and invests ₹2 lakh in NPS, she can save up to ₹46,800 in tax annually.

6. Step-by-Step: How Girls Can Open an NPS Account

There are two ways — Online and Offline.

A. Online Method (eNPS)

  1. Visit the official portal: https://enps.nsdl.com
  2. Choose “Registration”.
  3. Select Aadhaar-based or PAN-based registration.
  4. Fill in your details — name, DOB, address, nominee details.
  5. Upload photo, signature, and documents.
  6. Make your first contribution (minimum ₹500).
  7. You’ll get a Permanent Retirement Account Number (PRAN).

B. Offline Method

  1. Visit any Point of Presence (PoP) — major banks like SBI, HDFC, ICICI, PNB, or post offices.
  2. Fill the NPS subscriber form.
  3. Submit KYC documents (Aadhaar, PAN, bank proof).
  4. Pay the initial contribution.
  5. Receive your PRAN kit.

7. Withdrawal Rules – How Girls Get Their Money

When you turn 60, you can:

  • Withdraw 60% of the corpus tax-free in lump sum.
  • Use 40% to buy an annuity plan, which gives monthly pension.

Example:
If your NPS corpus is ₹60 lakh:

  • ₹36 lakh → You get this as tax-free lump sum
  • ₹24 lakh → Used for monthly pension (about ₹15,000–₹20,000 per month for life)

8. How a Young Girl Can Plan NPS for Maximum ₹60 Lakh+

To hit ₹60 lakh:

  • Start early — age 18–22 is perfect.
  • Invest ₹4,000–₹5,000 per month in Tier I account.
  • Choose Active Choice with 50–75% equity allocation.
  • Increase your contribution by 5–10% every year.

9. Special Benefits for Working Women

  • Many corporates match employee contributions, meaning if you invest ₹5,000/month, the company may add ₹5,000 — doubling your savings.
  • If you take a career break, you can still continue investing independently.
  • NPS works well alongside other savings like PPF, EPF, Sukanya Samriddhi Yojana.

10. NPS vs Sukanya Samriddhi Yojana (SSY) for Girls

Feature NPS SSY
Entry Age 18–70 years Before girl turns 10
Returns 8–10% (market-linked) Fixed rate (~8.2%)
Tax-Free Withdrawal 60% lump sum Entire amount
Pension Option Yes No

💡 Best strategy: Parents can open SSY for a minor girl, and when she turns 18, she can open NPS for herself.

11. Risks and Safety in NPS

  • NPS is government-regulated — your money is managed by licensed pension fund managers.
  • Market risk exists due to equity exposure, but long-term horizon reduces impact.
  • Government securities in the portfolio ensure capital safety.

12. How Girls Can Use NPS for Financial Independence

NPS ensures:

  • You don’t depend on spouse/children for post-retirement income.
  • You have a guaranteed monthly pension.
  • Tax-free lump sum can be used for buying property, medical needs, or travel.

13. Useful Links

14. Key Takeaways

  • Girls can easily accumulate ₹15–₹60 lakh+ in NPS by retirement.
  • Starting early and investing regularly is the key.
  • NPS gives tax benefits, pension, and security.
  • Backed by the Central Government — reliable for long-term planning.

 

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