Your journey to being

“Future Sure” starts Today..

This is the sole and exclusive property of HDFC Pension. January 31, 2025
Story of Karan: a young professional who transformed his portfolio through
smart planning

Started job at 25, took care of his basic needs & started investing a fixed amount every year as savings.

Invested 10,500 per month

Gained 50% growth

Saved 1.5 Lakhs in taxes

Made 7.4 Lakhs corpus

All of this in just 4 years

2
This is not a story, its a documented reality !

50%
growth in
investment in
just 4 years!

Do you
want to
know how

3
Through NPS…

What is NPS? Benefits

A voluntary pension scheme by the government, to

promote retirement planning amongst Indians and Tax benefit on contribution
EEE Product
obtain social security by employer
Tax benefits at 3 stages –
contribution, accumulation & 14% (Basic + DA) in New
withdrawal Regime & 10% in Old Regime
(upto 7.5 Lakhs)

Flexible Contribution Fully Portable across jobs &

Minimum 1000 p.a to keep the locations
account active. No max cap.
How does it work?

Investments under NPS

There are two investment schemes in NPS focusing on 4 asset classes i.e.
Equity, Corporate bonds, Government securities & Alternate investments

Auto Set it, Forget it Active Do it yourself

Conservative Moderate Equity Govt. Sec

LC25 LC50 Max 75% Max 100%

Balanced
Balanced Aggressive Corp. Bonds Alternate Inv
BLC LC75 Max 100% Max 5%
 But, its too soon to start, my salary is less !

₹ 15.9 Cr
Start with just ₹130 per day and build your
1st crore in your forties!

Corpus by starting at 25
₹ 8.3 Cr

₹ 3.57 Cr
60 Lakh

₹ 1.5 Cr

₹ 59 Lakh
₹ 21 Lakh
₹ 53K ₹ 6 Lakh

25 yrs 30 yrs 35 yrs 40 yrs 45 yrs 50 yrs 55 yrs 60 yrs

Assumptions: DOB: 01-01-1999 | Retirement Age 60 Years 01-01-2059 | Tax Regime – New | Annual Basic Contribution (Employer) – 14% | Annual Increase in Contribution
5 (Employer)- 10%, additional 20% increment after every 3rd year | Expected Returns – 11% | Basic salary – 3,42,857
 But, its too soon to start, my salary is less !

₹ 15.9 Cr
A staggering 17% higher corpus by starting early!

₹ 13.6 Cr
Corpus by starting at 25
₹ 8.3 Cr
Corpus by starting at 35

₹ 3.57 Cr
₹ 6.8 Cr
60 Lakh

₹ 1.5 Cr ₹ 2.6 Cr

₹ 59 Lakh
₹ 21 Lakh ₹ 96 Lakh
₹ 6 Lakh ₹ 27 Lakh
₹ 53K
25 yrs 30 yrs 35 yrs 40 yrs 45 yrs 50 yrs 55 yrs 60 yrs

Assumptions: DOB: 01-01-1999 | Retirement Age 60 Years 01-01-2059 | Tax Regime – New | Annual Basic Contribution (Employer) – 14% | Annual Increase in Contribution
6 (Employer)- 10%, additional 20% increment after every 3rd year | Expected Returns – 11% | Basic salary – 3,42,857
But, there’s no liquidity !

Which is exactly why you build a 1.78X higher corpus by not responding to market ups & downs

Stays put
Responds to market corrections

₹ 74.3 Lakh

₹ 32.5 Lakh

₹ 41.8 Lakh

Jun’09 Aug’24

Assumptions:
Time period for Calculation – 15 years | NPS NAV considered | Market correction of 2011,2015,2020 considered | Entry logic : Peak date +5% | Exit logic : Peak date -
5% | Monthly Contribution – 4,000 with Annual Increase in Contribution (Employer)- 10%, additional 20% increment after every 3rd year
But, I already contribute to Provident Fund every month

₹ 15.9 Cr

₹ 11.5 Cr

NPS

PF

Category Returns 8.1% 11%

Because, with NPS, you can build a 40% higher corpus than PF due to superior
returns over 35 years

Assumptions:
Age of the individual – 25 years | Time period for Calculation – 35 years | Monthly Contribution – 4000 with Annual Increase in Contribution (Employer)- 10%, additional 20% increment
8 after every 3rd year | ROI assumed – 11%.For NPS used hybrid equivalent weights - Equity (65%), Corp Bond (25%) and Govt Securities (10%)
 But, I also invest in Mutual Fund SIP

Mutual Fund Journey

Petrol Charges
Toll Tax
₹ 15,840 on maturity ₹11.07 Cr
Contribution post ₹1.02 Cr
taxation

₹48,000 ₹32,160 ₹12.09 Cr

--- 35 years ---

NPS Journey
Petrol Charges ₹15.9 Cr
Toll Tax
FREE on maturity
Contribution without
taxation FREE

₹48,000 ₹48,000 ₹15.9 Cr

--- 35 years ---

Assumptions:
Age of the individual – 25 years | Time period – 35 years | Monthly Contribution – 4000 with annual increase of 10%, additional 20% increment after every 3rd year | NPS ROI assumed –
11% |NPS asset allocation – E (65%), C (25%) and G (10%) |Mutual Fund Return -12% | LTCG 12.5% | Total tax 33% (including 3% surcharge)
But, Annuity is mandatory !

But the rate is too low.. But, money is blocked for life

FD rate trend over the last 26 years

Early Return of
Purchase price

Liquidity Option

Advance Annuity
Rs. 50,00,000 invested in 2003 under both Annuity and FD will lead Option
to FD interest Income of Rs. 70,02,500 and Annuity Income of Rs.
78,75,000 in 21 years.
A higher income of 8.72 Lakhs (12.5% higher) due to lock-in of
annuity rates for lifetime.
Loan against
Annuity is the only instrument that gives a guaranteed lifetime policy
income taking care of longevity and reinvestment risk

Option to lock-in higher rates today for your retirement with

“Deferred Annuity”
Assumptions:
FD tenure of 3 years, Annuity rate for ROP derived from Life without ROP option assumed a difference of 2%
How to get started?

New NPS Account Opening Already have an NPS Account

Click on the dedicated link shared Complete the ISS/ICSS excel form
1 by the nodal officer or your NPS 1 shared by the Nodal officer or your
relationship manager NPS relationship manager

Select the category as “Corporate

2 2 Send the Excel to your HR and RM
Subscriber”

Complete the online registration The PRAN migration may take few
3 form and upload the required KYC 3 days. You will get a email
document confirmation from CRA once
migration is completed

Complete OTP authentications to Post that reach out to your HR

4 generate you PRAN. Post that 4 team to initiate corporate
reach out to your HR team to contribution
initiate corporate contribution

11
Still undecided?
See this!
Lose ₹ 6,300 per day or take the step towards your first crore!

At 25 At 35
₹4000
11%

35 25
Get started
₹ 5.75 Cr ₹ 5.65 Cr today!

₹ 15.9 Cr ₹ 13.6 Cr

A whooping ₹2.3 Cr difference in the corpus!

13
Thank You!
Annexure
Index

 NPS Architecture

 Types of NPS Account

 Exit & Withdrawal from NPS

 Systematic Lump sum Withdrawal

 Tax benefit explanation

 Impact of Choosing Right PFM

 Why HDFC Pension?

 NPS for Spouse & Children

 Tech Advancement in NPS

 Charges under NPS

16
NPS Architecture

17 Back to home
Types of NPS Accounts

18 Back to home
Exit & Withdrawal Options

Pre-mature Exit Exit on Maturity Death benefits

• Allowed after 5 years of • Exit on retirement age defined • Entire Corpus can be claimed
account opening by the corporate is treated as by nominee/legal heir
exit on maturity
• Upto 20% of Corpus is • Amount received by
alllowed for withdrawal • Minimum 40% of Corpus to nominee/legal heir is tax
be invested in annuity exempt
• Balance amount should be
invested in annuity • Up to 60% of corpus can be
withdrawn
• Amount withdrawn is tax-free
• Amount withdrawn is tax free

19
Back to home
SLW (Systematic Lumpsum Withdrawal)

How has SLW changed existing deferment options for NPS subscribers?

Existing Deferment Guidelines New Deferment Guidelines

• Deferral till 75 years (age 60 or • Phased withdrawal: Withdraw up to lump sum

superannuation required). corpus i.e 60% of the lump sum in instalments.

• Lump sum withdrawal: one-time or annual • Flexible withdrawal intervals: Choose

(individual requests needed). monthly, quarterly, half-yearly, or annual withdrawals.

• Limited flexibility: annual manual • One-time request: No need for recurring requests
withdrawals. for withdrawals.

• Deferral applies to both annuity and lump • Switches between asset classes allowed: During
sum. SLW deferment period.

• PFM change allowed: During SLW period

SLW Notes:
• Not applicable for premature exits.
• Only applies to lump sum pension corpus at age 60 or superannuation.
• Taking annuity still required at 60/superannuation, with a minimum of 40% of corpus invested.

20 Back to home
 Exclusive Tax benefit beyond 80C
With NPS ( New Tax post
Particulars Without NPS ( Old Tax ) With NPS ( Old Tax )
Union Budget 2024)
Total Salary 10,00,000 10,00,000 10,00,000

Basic (40% of Gross)

4,00,000 4,00,000 4,00,000 1. Contribution of up to 14% of
HRA (50% of Basic)
Basic Salary (to the extent of 7.5
2,00,000 2,00,000 2,00,000 lakh*) is eligible for tax
Other Allowances 4,00,000 4,00,000 4,00,000 deduction u/s 80CCD(2)
Corporate Contribution - NPS 40,000 56,000

2. Contribution of up to
Deductions: Rs.50,000 is eligible for tax
Standard Deduction u/s 16(ia) deduction u/s 80CCD(1B)
50,000 50,000 75,000
Deductions under Chapter VIA:
Both the tax benefits are mutually
80CCE 1,50,000 1,50,000 exclusive and can be availed at the same
-
time.
Corporate Contribution - NPS
0 40000 56000
[80CCD (2)]
*This limit includes Employer’s EPF and
Individual Contribution to NPS
0 50000 0
Superannuation contribution. 14% is
[80CCD (1B)] available only under new tax regime.
Total Deductions 2,00,000 2,90,000 1,31,000

Taxable Salary 8,00,000 7,10,000 8,69,000

Change in Taxable Salary 90,000 -69,000
Tax 72,500 54,500 36,900
Health and Education Cess 2,900 2,180 1,476
Total Tax 75,400 56,680 38,376

21 Back to home
Impact of choosing the right PFM

22 Back to home
Why HDFC pension as PFM?

Governance strength
Investment strategy governed by Industry
Leading – HDFC Life Insurance Company Ltd,
managing an AUM of ₹3.25 Lakh Crore
& 24 years of rich experience

Dedicated team of experts

Largest Team amongst private pension fund
managers, managing the highest AUM
across private sector – ₹1 Lakh Crore+

Best NPS Service Provider

HDFC Pension won the 'Best Pension Customer Service
Provider Award' in the India Insurance Summit, 2024
held at Mumbai

Compliant with Guidelines

Complying with stringent investment guidelines

E Top 200 companies by market

capitalization G State & Central Government
securities

C Upto A rated corporate bonds

with dual rating A Invits, REITS, AT1 bonds

23 Back to home
NPS for all

Retail NPS NPS Vatsalya

 For friends, family and relatives  For kids (0-18 years)

 Exclusive 50,000 Tax exemption over and  Robust Investment Tool to start early
above your 80C Limit

24 Back to home
NPS WhatsApp Genie

NPS Genie – WhatsApp

 Make Contributions
 Download Statement

25 Back to home
Charges Under NPS (exclusive of GST)

Intermediary Charge Head Charge Frequency of deduction Mode of deduction

Subscriber Registration Rs.400 One time

POP From the contribution
Contribution Processing* 0.50%
(HDFC Pension) On each transaction amount
Non – Financial Transaction Processing Rs. 30
PRAN Generation Rs.39.36 One time
By cancelling the units
CRA
Annual Maintenance Rs.57.63 Per annum on the last day of the
(KFintech)
calendar quarter
Financial Transaction Processing Rs.3.36 On each transaction
Custodian Asset Servicing 0.0032% Through NAV deductions
Per annum
NPS Trust Trust Management 0.003%

*Minimum Rs.30 and maximum Rs.25,000 per transaction

Pension Fund Manager Fees: From 1st Apr’21, Fund Management charge shall be levied basis below AUM slab of the Fund Manager.

AUM Slab (In Cr) PFM Charge (% of AUM)

Up to Rs 10,000 0.09%
Rs 10,001 - Rs 50,000 0.06%
Rs 50,001 - 1,50,000 0.05%
Rs 1,50,000 and above 0.03%

26 Back to home
Contact Details: HDFC Pension

 L1 : Rahul Mandal : 9766089657 :

rahul.m956@hdfcpension.com

 L2 : Tanvi Patil : 9594833060 :

ptanvi@hdfcpension.com

27