News India Live, Digital Desk: When we sit down to plan retirement, the first question that comes is where to invest our hard-earned money, so that we do not have to lend a helping hand to anyone in old age. In this case, the name of the government’s National Pension System (NPS) scheme comes first. Many people consider it the best option for retirement, while some people run away from it due to its shortcomings. If you are also confused about NPS, then do not worry. Come, today let us do a complete calculation of its advantages and disadvantages in very simple language, so that you can decide for yourself whether this scheme is for you or not. Why should you invest in NPS? (These are 5 big benefits) Double benefit of saving tax: NPS is a great option to save tax. You can get exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Apart from this, you also get additional tax exemption (under section 80CCD(1B)) of Rs 50,000. That is, you can save tax on total investment of Rs 2 lakh. Better returns than other options: NPS money is invested in stock market (equity) and government bonds. Because of this, it has the potential to give much better returns in the long run than traditional schemes like PPF or FD. Experts believe that it can give annual returns of 9% to 12%. Complete freedom of investment: This scheme gives you the freedom to choose how much of your money to invest in the stock market and how much in safe bonds. If you can take risk, you can increase investment in equity for higher returns. Management fees are very low: Compared to mutual funds, the fund management fee of NPS is negligible (about 0.09%). This means that a major part of your earnings is used to grow your fund. No hassles on changing jobs: This account is completely portable. That means, even if you change jobs, your NPS account will remain the same and your investment will continue without any interruption. Why not invest in NPS? (These are 3 big shortcomings) Cannot withdraw all the money at once: This is the biggest and most talked about drawback of NPS. When you turn 60, you can withdraw only 60% of the total amount you have deposited as a lump sum (this part is tax-free). Taking pension from 40% is mandatory: You have to mandatorily invest the remaining 40% of the money in an annuity plan of an insurance company, from which you get a pension every month throughout your life. Tax is levied on the pension amount: Whatever monthly pension you get from the annuity plan. on Tax is levied according to your income tax slab. Many people do not like this thing, because the money of PPF or EPF is completely tax-free.