What is National Pension Scheme?

The National Pension Scheme (NPS) is a Government-sponsored retirement savings program in India. It is designed to help individuals build a corpus for their retirement years. Under this scheme, participants can contribute regularly during their working years, and the accumulated amount is invested in a mix of equity, fixed income, and Government securities. The NPS offers tax benefits and allows individuals to choose their investment options based on their risk appetite. Upon retirement, a part of the accumulated amount can be withdrawn as a lump sum, while the remaining portion is utilized to purchase an annuity, providing a regular income during retirement.