National Pension System

The National Pension System (NPS) is a voluntary, contributory, market-linked retirement savings scheme designed to help individuals build a pension corpus for their retirement.

Key Features

• Nature: Contributory pension and retirement savings scheme.
• Objective: To provide individuals with a structured way to save for retirement and build a long-term pension corpus.
• Coverage: Available to eligible Indian citizens and other permitted categories, subject to applicable rules.
• Contribution: Subscribers contribute regularly to their NPS accounts during their working years.
• Investment: Contributions are invested in market-linked pension funds across approved asset classes.
• Retirement Benefit: At retirement or exit, the accumulated corpus can be used according to the applicable NPS withdrawal and annuity rules.
• Portability: The NPS account is portable, allowing subscribers to continue their account when they change jobs or locations.
• Regulator: The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
• Type of Benefit: Retirement savings and pension benefits rather than a non-contributory social assistance payment.