Securing Retirement
The National Pension Scheme is a government-backed retirement savings plan that helps you build a financially secure future with systematic investing, tax benefits, and market-linked returns.
What is NPS?
National Pension Scheme is a voluntary, market-linked retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority).
Key Facts About NPS
Eligibility: Any Indian citizen between 18 to 70 years of age can open an NPS account.
Regulation: Regulated by PFRDA under the Ministry of Finance, Government of India.
Investment: Your contributions are invested in equity (up to 75% in traditional schemes, up to 100% in new schemes launched October 2025), corporate bonds, government securities, and alternative assets based on your choice.
Portability: Your NPS account moves with you across jobs, cities, and sectors seamlessly.
Unique Identifier: You receive a Permanent Retirement Account Number (PRAN) that stays with you for life.
Why Invest in NPS?
NPS offers unique advantages that make it one of the best retirement planning options in India.
Maximum Tax Benefits
Save up to ₹2 lakhs in taxes annually. Contributions under Section 80CCD(1) up to ₹1.5 lakhs and additional ₹50,000 under Section 80CCD(1B). Employer contributions also tax-exempt.
Market-Linked Returns
NPS equity funds have delivered around 17% returns in the past year (as per PFRDA data), significantly outperforming traditional savings. Your corpus grows with professional fund management and market-linked growth potential.
Low Cost Structure
NPS has one of the lowest cost structures globally. Low charges mean more money stays invested and compounds over 30-40 years, resulting in a larger retirement corpus.
Complete Flexibility
Choose your pension fund manager, investment mix, and contribution amount. Switch between fund managers and adjust asset allocation as per your risk appetite and goals.
Government Regulated
PFRDA ensures complete transparency and security. Regular monitoring and strict regulations protect your retirement savings with institutional oversight.
Power of Compounding
Small, regular contributions grow significantly over time. Starting at age 25 with ₹5,000 monthly can build a ₹2+ crore corpus by retirement at 60.
NPS Account Types
Choose the account type that best suits your needs.
Tier I Account (Mandatory)
This is the primary retirement account with tax benefits and withdrawal restrictions.
- Minimum contribution: ₹500 per transaction
- Minimum annual contribution: ₹6,000
- Tax benefits under Section 80CCD (only in old regime for personal contributions)
- Withdrawal allowed only at retirement (age 60) or specific conditions
- 60% can be withdrawn as lump sum (tax-free)
- 40% must be used to purchase annuity for monthly pension
- Exception: If total corpus is ₹5 lakh or less, 100% can be withdrawn
Tier II Account (Voluntary)
This is an optional savings account with complete withdrawal flexibility.
- Can only be opened if you have a Tier I account
- Minimum contribution: ₹250 per transaction
- Minimum initial contribution: ₹1,000
- No mandatory annual contribution
- Withdraw anytime without restrictions
- No tax benefits (except for government employees with 3-year lock-in)
- Works like a liquid investment account
How to Start Investing in NPS
Opening an NPS account is simple and can be done online in minutes.
Visit eNPS Portal
Go to the official eNPS website or visit any authorized Point of Presence (bank, post office) to open your account.
Complete KYC
Provide your Aadhaar, PAN, and bank details. Your KYC will be verified electronically for instant account opening.
Choose Options
Select your pension fund manager and investment choice (Active or Auto). Decide your asset allocation based on risk appetite.
Get Your PRAN
Receive your unique Permanent Retirement Account Number. Start contributing regularly through online payments or direct debit.
Tax Benefits Explained
NPS offers the most comprehensive tax benefits among all retirement investment options.
Section 80CCD(1)
You can claim deduction for your own contribution up to 10% of salary (for salaried) or 20% of gross income (for self-employed), with an overall limit of ₹1.5 lakhs under Section 80C. Available only under OLD tax regime.
Section 80CCD(1B)
Additional exclusive deduction of up to ₹50,000 over and above the ₹1.5 lakh limit under Section 80C. This is available only for NPS investments. Available only under OLD tax regime.
Section 80CCD(2)
Employer contribution up to 10% of salary (old regime) or 14% of salary (new regime, from FY 2025-26) is tax-exempt. This deduction is over and above the ₹1.5 lakh limit and has no upper monetary cap. Available under BOTH old and new tax regimes.
At Withdrawal
60% of your corpus withdrawn as lump sum at retirement is completely tax-free. 40% used to purchase annuity is also tax-exempt, though the pension received is taxable as income.
Request Your Employer to Contribute
Generate a professional letter to request your employer to enroll you in Corporate NPS and contribute to your retirement savings.
Why Employers Should Contribute to NPS
Tax Benefit for Employer: Employer contributions (up to 10% of salary) can be claimed as business expense under Section 36(1)(iv)(a) of Income Tax Act.
No Additional Cost: Contribution can be restructured from existing CTC without increasing company costs.
Employee Benefit: Helps attract and retain talented employees by offering superior retirement benefits.
Generate Your Request Letter
Start Building Your Retirement Today
Join millions of Indians who are securing their financial future with NPS. The earlier you start, the larger your retirement corpus grows.
Open NPS Account NowThe Future of NPS: Exciting Changes Ahead
PFRDA is continuously working to make NPS even better. Here are the proposed improvements that could transform retirement planning in India.
Note: Some changes are already implemented (Oct 2025), while others are under consideration and pending final approval from PFRDA.
🎯 Multiple Investment Options (Implemented October 2025)
What's New: The Multiple Scheme Framework now allows you to invest in different schemes based on your risk appetite - from conservative to aggressive options with up to 100% equity allocation.
Why It Matters: You can now customize your retirement portfolio like never before, choosing from multiple pension fund schemes tailored to your age, profession, and goals.
💰 Higher Withdrawal Flexibility (Proposed)
What's Being Considered: PFRDA has proposed allowing 80% lump sum withdrawal (instead of current 60%) and reducing mandatory annuity to just 20%.
Why It Matters: More money in your hands at retirement! You will have greater control over your retirement corpus and can invest it as per your needs.
🏥 Emergency Withdrawals (Proposed)
What's Being Considered: Enhanced partial withdrawal options for health emergencies, family needs, and even job loss situations. Proposals include allowing partial withdrawals even after retirement age.
Why It Matters: Life happens! These changes will provide financial safety nets during unexpected situations while keeping your retirement planning intact.
⏰ Early Access After 15 Years (Proposed)
What's Being Considered: Ability to withdraw from your NPS account after completing just 15 years of investment, instead of waiting until age 60.
Why It Matters: Greater flexibility for those who start investing young. You are not locked in until 60 if your life plans change.
💳 Loans Against NPS Corpus (Proposed)
What's Being Considered: PFRDA is proposing to allow subscribers to take loans from regulated financial institutions by pledging their NPS account as collateral.
Why It Matters: Access emergency funds without breaking your investment! Your corpus continues to grow while you meet urgent financial needs.
📊 Systematic Withdrawal Plans (Proposed)
What's Being Considered: Introduction of SWP-style payouts where you can withdraw fixed amounts monthly/quarterly while keeping the rest invested and growing.
Why It Matters: Create a self-managed pension! Get regular income without depleting your corpus all at once.
India's Pension System: Building a Better Future
With these progressive reforms, India is creating one of the most flexible and forward-thinking pension systems globally. Unlike rigid systems in France or the USA, NPS empowers YOU to control your retirement destiny.
The best time to start was yesterday. The next best time is today.
Start Your NPS Journey Now