NPS- National Pension System

The National Pension System (NPS) is a government-sponsored pension scheme launched in 2004 for government employees and extended to all citizens in 2009. It is a voluntary, long-term investment plan aimed at providing retirement income. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Key Features and Benefits:

• Eligibility: Open to all Indian citizens aged 18-65, including employees from the public, private, and unorganised sectors, except armed forces personnel.
• Contributions: Subscribers contribute regularly to their NPS account during their working life. Upon retirement, a portion of the corpus can be withdrawn as a lump sum, while the remaining amount is used to purchase an annuity, providing a regular pension.
• Investment Options: NPS offers a mix of equity, corporate bonds, and government securities, with the flexibility to choose or change the fund manager
• Tax Benefits: Contributions to NPS are eligible for tax deductions under Section 80C and Section 80CCD of the Income Tax Act.
• Higher Returns: NPS investments have historically provided returns between 9% to 12% annually, higher than traditional tax-saving instruments like PPF.
• Portability: The scheme is portable across jobs and locations.
• Low Cost: NPS is known for its low-cost structure compared to other pension schemes.

NPS is an excellent option for individuals looking to secure their financial future with a regular pension post-retirement