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.
