Are you worried about how you’ll maintain your lifestyle after retirement?

In Pakistan, where financial planning often takes a backseat, many individuals face uncertainty during their post-working years. A Voluntary Pension Scheme in Pakistan offers a proactive solution, enabling you to build a secure and stable financial future as an oversea Pakistani.

Whether you’re a young professional taking your first steps in the workforce or an overseas Pakistani eager to invest in your homeland, VPS provides the flexibility, tax benefits, and long-term growth potential to ensure you can retire comfortably.

With the Roshan Pension Plan by JS Bank, retirement planning is now easier, smarter, and more rewarding.

As a Non-Resident Pakistani, let’s explore how a VPS can help you achieve financial independence and peace of mind.

What is a Voluntary Pension Scheme (VPS)?

A Voluntary Pension Scheme is a defined savings and investment vehicle created to help individuals build a stable income for retirement. It allows participants to contribute funds during their working years, which are then professionally managed by pension fund managers.

The invested amount grows over time, thanks to a diversified portfolio of equities, debt, and money market instruments. At retirement, the accumulated savings provide a steady income, helping individuals maintain financial independence.

How Does a Voluntary Pension Scheme Work?

1. Participant Contributions:

Participants make periodic or lump-sum contributions to the pension fund. Contributions are flexible and can be adjusted based on individual preferences.

2. Fund Allocation:

Contributions are invested in three sub-funds:

• Equity Sub-Fund: High-risk, high-return potential.
• Debt Sub-Fund: Stable returns with moderate risk.
• Money Market Sub-Fund: Low-risk, short-term liquidity solutions.

Retirement Benefits:

At retirement (between the ages of 60-70), participants can withdraw up to 50% of the accumulated balance tax-free. The remaining amount can be converted into an annuity or income payment plan for regular post-retirement income.

Benefits of a Voluntary Pension Scheme in Pakistan

Tax Advantages

VPS participants receive tax credits on their contributions, reducing overall tax liability. At retirement, up to 50% of the accumulated balance can be withdrawn tax-free.

Flexibility and Portability

Contributions can be adjusted based on income flow, and the account remains with the participant even after changing jobs.

Diverse Investment Options

Participants can choose investment allocations in equity, debt, or money market instruments, enabling personalized financial strategies.

Secure and Regulated

Governed by the SECP (Securities and Exchange Commission of Pakistan), VPS ensures transparency and security through professional fund management.

Retirement Income

At retirement, participants can opt for a steady monthly income through an annuity or income payment plan, ensuring financial independence.

JS Bank’s Roshan Pension Plan

JS Bank’s Roshan Pension Plan is an excellent example of a voluntary pension scheme tailored for Pakistanis, especially non-resident Pakistanis (NRPs).

Key features include:

• Open your account digitally through the Roshan Digital Account platform.
• Zero sales load and management fees capped at 1.5%.
• Start with as little as PKR 10,000.
• Participants can switch between sub-funds seamlessly.
• Roshan Digital Account holders (NRPs) with valid CNIC/NICOP are eligible.

Who Manages VPS in Pakistan?

Pension Fund Manager:

SECP-authorized asset management companies or insurance companies professionally manage the pension fund.

Responsibilities include ensuring compliance with SECP rules, managing investments, and providing regular reporting.

Trustee:

A trustee (usually a bank or company) ensures that contributions, investments, and earnings are secure and managed in the best interest of participants.

Participant:

Anyone over 18 with a CNIC or NICOP is eligible to join a VPS.

How to Start Saving with a VPS

1.  Choose a Pension Fund Manager:

Select a SECP-authorized pension fund manager like JS Bank for reliable and regulated services.

2. Open an Account:

Open a Roshan Digital Account to access the Roshan Pension Plan.

3. Start Contributing:

Begin with a minimum contribution and adjust as your financial situation evolves.

4. Monitor Investments:

Use digital tools to track fund performance and make necessary adjustments to maximize returns.

5. Plan Withdrawals:

Decide on an income payment plan or annuity for post-retirement financial needs.

Conclusion

A Voluntary Pension Scheme offers a path to financial security and independence during retirement. With benefits like tax savings, flexibility, and regulated management, it’s an ideal choice for Pakistanis looking to safeguard their future.

With the Roshan Pension Plan by JS Bank, you can start your retirement savings journey today and secure a stable future.