National
Pension System (NPS)
Government-backed retirement savings plan
The National Pension System (NPS) is a government-backed retirement savings plan that offers tax benefits, flexible investment options, and a secure future. It’s an excellent choice for long-term financial planning.
Key benefits of investing in NPS
Invest in the National Pension System for a secure, tax-efficient, and flexible approach to retirement planning.
- Retirement Security
- Regular Income Post-Retirement
- Flexible Investment Options
- Low Cost
- Government Backing
- Tax Efficiency
FAQs
Frequently asked questions on NPS
NPS is a government-backed pension scheme aimed at providing retirement income to all Indian citizens, including workers from the public, private, and unorganized sectors.
Under NPS, individuals contribute regularly during their working years to build a retirement corpus, which is used to provide pension income after retirement.
Contributions up to ₹1.5 lakh qualify for a deduction under Section 80C, and an additional ₹50,000 under Section 80CCD(1B) for extra tax savings.
There is no upper limit to the contribution, but a minimum annual contribution of ₹1,000 is required to keep the account active.
Tier I is the primary retirement account with tax benefits and restrictions on withdrawal, while Tier II is a voluntary savings account with no withdrawal restrictions but no tax benefits.
