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I guess, there is still no upper limit for this NPS contribution? Yes, there is a combined cap of 7.5l which includes Super Annuation and Employer's PF contribution. But, for NPS, as far as i know, there is no cap.

Unless you are working for a PSU (which now I think is the case), you should be able to stop your contributions if desired.

You can still contribute more to EPF but again that is now taxed beyond a limit (2.5L I believe). But you can increase your contributions to EPF upto this limit and earn more interest.

Now since you are almost about to retire, like you said - make peace, enjoy the final years of your employment and plan for 'How to spend your saving during retirement' :Cheering:

Great thread.
Here is my situation..

I recently hit 40 years age. I don't intend to continue in IT as a full time occupation for more than 3-4 years more. To progress in career beyond a certain ceiling, how you present yourself matters more than what you actually do. I believe I hit that ceiling.

I aim to have 50x of my current yearly expenses as my retirement corpus. I am close to that and a few more years of working should add enough cushion.

Here's my asset split:
Equity: 33%
Liquid funds/debt: 25%
Real estate: 25%
farm land: 15%

I believe, if you have the background to deal in farmland, it is a different asset class with its own booms and busts and aids in diversification.

Once I retire, I hope to take up some kind of teaching part time and still code as a hobby. I don't think I will be bored after getting away from full time employment. Between my video games, novels, travel ambitions, I should not have any free time.

I still have to convince my wife that we are ok to scale back from the firehose of a regular IT salary!

I will get some inheritance but I will hopefully pass that on to my kid without using any of it.

(Since this an automotive forum, thought this analogy would resonate.)

I remember reading about Colin Chapman's philosophy about building Formula 1 cars as light as possible. The only reference I could find today though was this quote attributed to the racing driver Innes Ireland:

"Colin's idea of a Grand Prix car was it should win the race and, as it crossed the finishing line, it should collapse in a heap of bits. If it didn't do that, it was built too strongly."

Personally, been thinking that my retirement "corpus" should be like this. Should be enough to last my lifetime comfortably and perhaps a bit more as a buffer. Too much more and it's of no use to me anymore and I spend more of the good years of my life working toward accumulating it.

(Of course this is a personal view- I don't have kids or anyone to "leave" anything for after my spouse and I go!)

This is exactly my view as well. I tell my friends the best retirement corpus is the one that becomes zero the day the last of me or my wife dies. And I have two kids :D

But as my father says how much money is enough money? As its really difficult to put a number to an ideal corpus that would be sufficient till your last days.

If one can manage the cash flow till the end he will always have the best retirement corpus..

My employer has opened a Tier 1 NPS account since May this year.
When I went through the statement for June, the opening balance showed -457 units and the closing balance was zero.

The following are my queries?
1. How come the opening balance be negative NAV units?
2. As the closing balance is showing zero, Does it imply so my contribution for the month of June has been effectively wiped out?

Please can you point me to the steps in opening a tier 1 NPS account? I want to enroll in employer's contribution via salary and also contribute to it additionally on my own.

Just open a normal NPS account via NSDL or CAMS depending on who your organization POP is. Reach out to your payroll folks to know your POP. You can open NPS account Online at below link.

https://enps.nsdl.com/eNPS/OnlineSub...l?appType=main

or

https://app.camsnps.com/CRA/auth/enp...xoCAmEQAvD_BwE


Once done, contact your organization respective POP provider & contact person ( HDFC / ICICI i know are POP). Get it converted via POP for employer contribution and follow the procedure by picking the right flexi component in your salary.

You can contribute to same account individually as well in lumpsum or monthly like a SIP.

MODS:

Can we move these to an NPS related thread (I believe we do have one for NPS or Pensions or Investments or Retirement Planning in general). Credit Cards thread is just a wrong thread for NPS discussion.

BTW, I am happy with the discussion on NPS :)

Enrollment:
May not be of much help here, addig to what .sushilkumar has stated.

I opened my account more than a decade back. Opened it via ICICDirect. The process was pretty straightforward.My KYC then was done by sharing the PAN AFIK. - I think now it will be based on adhaar.
https://enps.nsdl.com/eNPS/NationalPensionSystem.html

Note that there is some commission charged if we are investing via a POP (similar to investing in refular MFs Vs. direct mutual funds). I converted it to e-NPS a few years back. Longeterm, this would save 0.2% of the contributions.

Linkage to employer:
To get the company contributions routed to NPS via, please check with your company HR since there will be variation in how they handle this. I assume it would be straightforward.

From what I know, NPS through employer's contribution is not available in all the companies. So, it is better to check with HR/Finance in your organization before you open the account.

Yes, the organisation has to be registered with any of the POPs as a corporate and then the employees of the corporate are added under that umbrella. If an organisation is not registered with any POP, they may not offer corporate NPS benefits to its employees.

Even though an organization may be registered as a corporate under any POP, it does not make them contribute on behalf of employee compulsorily. The organization may choose not to contribute at all and the employees can opt to route their contribution through the employer after getting the same deducted from their salary. The employees can also contribute directly without routing the same through their employer. Both contributions are treated under different sections for IT deduction/ treatment.

Regards,
Saket

It is better to open the account thru the URL provided by the pension manager company chosen by your employer, that way you can minimize the paperwork.

Also, note that even if you open the account late in the FY, your employer may actually let you contribute 10% of your annual basic in equal installments across the remaining "n" months.

Works only in exceptional cases my friend and needs wholesome changes in your and others lifestyle. I am trying to do that. Before my 40th, I bought a largish piece of land ~14 kms from the city, planted over 500 trees on it, built a small 2 bhk house, installed solar lights, took up natural farming (the Subhash Palekar way). But I can't produce on a regular basis what my family needs or wants. After 2 years its only wheat, millets, 2 varieties of pulses, tumeric, lemon and chillies that I can safely say is self grown and will be self grown going forwards. All other things produced are sporadic and needs something or the other which kick starts the circle of outside dependence. Yeah, I know what I wrote above can sustain one dietary wise, but then you are asking yourself and others (in my case 4 others) to lead a reclusive / saintly life. I don't wish to push that choice on others.

But, I will still highly recommend everyone to buy some land in the nearest village they can and try their hand at growing food, if possible. I look it as a very very worthwhile hobby (though expensive) and a great safety net - I am not dependent on any 3rd party for me and my family's sustenance. And sometimes, you can just get lucky. There was another piece of land that I considered while purchasing this. The prices of that land and the area around it have shot up significantly as the planned Delhi - Katra expressway will run very close to it.

But to be clear, I spend about 18k-20k every month on running this endeavor of mine. To do that I need a job, and need to work in the city amassing paper money :)