I am 33 years old. I am working in co-op Bank since last 12 years. Should I Opt for new pension scheme or not?

Ans: Hello R
As a financial advisor, I would advise you to consult a chartered accountant for specific tax planning advice. They have expertise and in-depth knowledge of tax laws and regulations and can provide you with personalized strategies to minimize your tax liability. I can assist you in creating a comprehensive financial plan, but for tax planning, it is best to consult a tax professional.

Ans: Selection of tax regime depends on the amount for which you are eligible for deduction under old scheme. You can calculate tax liability with the help of Income tax calculator and compare tax liability under both regime.

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-act-2023.aspx

Ans: Deciding on NPS at 50 in India requires a careful consideration.

• Benefits: NPS offers tax benefits and a guaranteed pension post-retirement.
• Downsides: Lock-in period: Most of your contribution is locked until 60, limiting flexibility. Lower potential returns compared to some aggressive investment options.

Worth considering if:

• You already have major part of your retirement corpus built and want tax benefits and a pension.
• You have a long-life expectancy and are comfortable with a lock-in period.

Alternatives: Explore options like mutual funds that offer more flexibility and potentially higher returns.

Talk to a financial advisor to assess your specific situation and determine if NPS aligns with your retirement goals.