Be prepared for the UNCERTAIN FUTURE: New Pension Scheme

Now most of our batch mates started working & will get their First Salary soon (Some people might have got their 1st as well as 2nd Salary). Now I would like all you people start saving little bit (from your salary say at least 10%)for uncertain future like present conditions. And there are various kinds of savings options depending on individual's salary, expenditure pattern, age, dependents, knowledge over different investment options, risk taking ability & etc.

Pension scheme is one of these several investment options we got here.

With nearly 4-5 years of struggle UPA government has passed the New Pension Scheme bill, thanks to LEFT PARTIES...

There is very good article in BUSINESS STANDARD where they given brief information about the New Pension Scheme. I would like you people please go through without neglecting by saying ITS FINANCE STUFF.
If you people dont have time or not interested in reading full article at least read the below paragraph which I have pasted here from the article

"What is the default option?

The default option, called auto choice lifecycle fund, will see the investment mix change according to the age of the subscriber. At the lowest entry age of 18 years, auto choice entails an investment of 50 per cent in E, 30 per cent in C and 20 per cent in G.

The ratios will remain unchanged till the subscriber turns 36, when the ratio of investment in E and C will decrease annually, while the proportion of G rises.

By the time the subscriber is 55 years, G will account for 80 per cent of the corpus, while the share of E and C will fall to 10 per cent each"

You may wonder why particularly I posted this paragraph only. If you read that first paragraph carefully you will come to know! See at our age we dont have much responsibility or I can say dependents (Apart from some exceptional cases) so that we save more for very much possible rainy days. So how to save come the next question. As stated in the first paragraph, now we can take more risk like investing in stock market but that doesn't mean invest all your SAVINGS in stock market itself. Stock market is very volatile, you cant take back your money whenever you want. So I strongly suggest always keep aside some reserve amount which you require for your immediate future say 3-4 months expenditure or something like that. So out of your total savings, have at least 20% in liquid forms like Bank FDs & Savings account. And remaining thing you can invest like above mentioned paragraph depending on your risk taking ability & awareness.

I wanted to write more but I think its enough for today!!!