With an increase in the young population of India along with higher life expectancy, a pension plan is more necessary than ever before. The National Pension Scheme has been gaining in popularity recently. But is it relevant for millennials? Here are some benefits:

• Cost: One of the biggest benefits of the National Pension Scheme is its low cost. The fund management charge is 0.01% of the funds. For a corpus of ₹10 lakh, the charge is only ₹100. Low management fees can help your capital grow faster.
• Fund management: An NPS account offers both equity and debt at once with the option to change the allocation. Funds can be automatically allocated in more stable and less risky investments as you age. On maturity, receiving pension also does not require active involvement.
• Tax benefitsUnder Section 80CCD , investments up to ₹1.5 lakhs in National Pension Scheme are exempted from tax.Under Section 80CCD(1), you can claim a maximum deduction of up to 10% of your salary, and 20% of gross income if you're self-employed.Under Section 80CCD(1B), you can claim an additional self contribution of up to ₹50,000.The maximum deductible amount from the employer's contribution is the lowest of these:Employer's contribution10% of basic salary + DATotal gross income
• The 60% corpus that you are allowed to withdraw on maturity is completely tax-freeReturns:One of the most significant benefits of NPS scheme is that it has been offering consistently high returns. While returns vary by the fund manager, average returns since inception have exceeded 10% p.a., which is higher than comparable investment options.Balanced risksThe cap on equity allocation for the National Pension Scheme is from 50% to 75%. For those of 50 years of age and above, this allocation will be reduced by 2.5% each year. After 60 years, the cap is 50%. This protects the corpus from market volatility as compared to pure equity investments.⦁ Option to change the fund manager:One of the best benefits of the National Pension Scheme is the option to change your fund manager if you are not satisfied with its performance.