Build a Retirement Corpus, Systematically.
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Contributions are invested in market-linked asset classes, so returns are not guaranteed.
Key Features
- Tier I Account — The core retirement account, with restrictions on withdrawal as per PFRDA rules.
- Tier II Account — A voluntary account with greater flexibility, available alongside a Tier I account.
- Asset Choices — Allocation across asset classes such as equity, corporate debt and government securities, through Active or Auto choice.
- Regulated Charges — Fund management and account charges are regulated.
- Portability — Your account can be continued across jobs and locations.
Things to Know
- A portion of the corpus must be used to buy an annuity at exit, as per PFRDA rules
- Withdrawals before retirement are restricted
- Tax benefits may be available on contributions under applicable provisions of the Income Tax Act, and tax rules can change
- Returns depend on market performance
How VALUE ADDITION Helps
We help you understand NPS account types, asset allocation choices and exit rules, and how NPS may fit alongside your other retirement savings.
Important note
NPS investments are subject to market risks and returns are not guaranteed. Rules and tax provisions are set by PFRDA and the government and may change. Please read all scheme related documents carefully. This page is general information, not investment advice.