The National Pension System (NPS) is a government-backed retirement savings plan designed to help Indians enjoy financial security in their old age. Managed by the Pension Fund Regulatory and Development Authority (PFRDA), NPS encourages long-term savings habits.
Who can join?
Any Indian citizen between 18 and 65 years old can open an NPS account online or through a designated point. Starting with a minimal ₹500, you begin your retirement journey.
How it works: The National Pension System (NPS) offers two types of accounts:
- Tier I for core retirement savings
- Tier II for voluntary contributions.
You choose how your money is invested – either by selecting specific asset classes or letting the system do it for you based on your age.
Tax benefits: National Pension System contributions qualify for tax deductions under Sections 80C and 80CCD of the Income Tax Act, potentially saving you significant amounts.
Retirement: When you reach 60, you can withdraw up to 60% of your savings tax-free. You must use the remaining amount to buy an annuity for regular income
NPS is more than just an investment; it’s a step towards a financially independent retirement. Start planning your golden years today!
- Also Read:
- Old Age Homes in India
- Unemployment Rate in India
