Available for residents of India between the ages of 18 and 70.

The scheme is governed by the Pension Fund Regulatory and Development Authority (PFRDA) to ensure transparency and accountability.

Contributions to NPS are eligible for tax deductions under Section 80C (up to ₹1.5 Lakh) and an additional ₹50,000 under Section 80CCD (1B).

NPS offers low management costs as compared to other retirement options, allowing individuals to accumulate wealth efficiently.

NPS enables systematic savings for retirement, ensuring a comfortable post-retirement life.

NPS is portable across jobs and locations, allowing seamless transfer of the account when changing jobs or locations.

Historically, NPS has provided competitive returns compared to other traditional pension schemes, as investments are made in market-linked securities.

o Contributions are eligible for tax deductions up to ₹1.5 Lakh under Section 80C.
o Additional Tax Benefit of ₹50,000 under Section 80CCD (1B) for NPS contributions.

NPS offers investors the freedom to choose from a mix of equity (E), corporate bonds (C), and government securities (G).
o Equity (E): High returns, but higher risk.
o Corporate Bonds (C): Medium risk with stable returns.
o Government Securities (G): Low risk, guaranteed returns.

o Investors have the flexibility to decide how their funds are allocated among the three asset classes: Equity (E), Corporate Bonds (C), and Government Securities (G).
o The allocation can range from 0% to 75% for equity (with a maximum of 75% in equities).

o For those who prefer a hands-off approach, NPS offers an auto-choice strategy, where the asset allocation is based on the individual’s age.
o The allocation is gradually adjusted, reducing the exposure to equities as the individual gets older, ensuring a more conservative portfolio as one nears retirement.

o Minimum initial contribution: ₹500
o Minimum annual contribution: ₹1,000
o Contributions are locked until retirement.

o Minimum contribution: ₹1,000
o Offers more flexibility in terms of withdrawals compared to Tier I.

Allowed after 3 years of continuous contribution for specific purposes such as children’s education, marriage, or medical emergencies.

On retirement, a portion of the corpus can be withdrawn, and the remaining must be used to purchase an annuity, which provides a regular monthly pension.