Start by assessing your financial needs for retirement. Consider your desired lifestyle, health care costs, and any other expenses you expect. This will provide a clear goal when planning your savings.
Compounding is a powerful tool that can significantly increase your retirement savings. However, to take advantage of it, you need to understand how interest compounds over time. This will motivate you to contribute more to your NPS account.
Time is your greatest ally in retirement planning. The earlier you start investing, the more time your money will have to grow, making long-term investing an excellent strategy for wealth creation.
Consistency is also another important key when building a retirement corpus. Set up automatic contributions to your NPS account to ensure that you are regularly investing.
NPS offers two types of accounts: Tier I and Tier II. Tier I is mandatory for retirement savings and comes with tax benefits, while Tier II is a voluntary account that offers more flexibility.
Finally, decide on the investment options within NPS. You can choose from a variety of pension funds and schemes based on your risk appetite and financial goals.