I am a public sector employee with mandatory contribution to the National Pension Scheme (NPS). Does it make sense for me to invest in a pension scheme offered by insurance companies, which my agent is pressing me to take? - Anita Virmani, Mumbai

The NPS now allows for an additional Rs.50, 000 annual contributions, which can be claimed towards tax savings under Section 80CCD over and above the Rs.1.5 lakh contribution one can make under Section 80C. Given the tax benefits and the long-term nature of the NPS, it makes immense sense to continue in this retirement savings scheme than opt for one offered by an insurance company.

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