Any citizen of India, resident or non-resident, can subscribe to the National Pension System (NPS). Applicants must be between 18-85 years of age. Subscribers must comply to standard KYC norms.

The National Pension System (NPS) offers a secure way to build a retirement corpus with market-linked returns, low costs, and tax benefits in old as well as new tax regime. It provides flexibility in choosing fund managers, asset allocation, and contributions. NPS is portable across jobs and locations, ensuring long-term financial security and regular guaranteed pension after retirement.

The National Pension System (NPS) is a government backed retirement savings scheme in India. The subscriber starts investing in NPS during his working years till the time of his retirement. On maturity, a portion of the accumulated wealth can be withdrawn, while the remaining amount must be used to purchase an annuity for regular pension income. It encourages long-term savings through regular contributions, offers tax benefits, and allows investors to choose from various investment options.

Yes, a subscriber is allowed to open a maximum of three PRANS. One PRAN each can be opened under the three CRAs-CAMS, Protean & Kfintech.

Tier I & Tier II are types of NPS accounts. The goal of the tier I NPS account is to create long-term retirement savings, it’s the primary and mandatory account. Tier II is an add-on pension account that offers better withdrawal benefits and immediate financial aid.

There is no minimum contribution limit in NPS.

For NPS Tier I accounts, The minimum vesting period is 15 years or retirement/60 years (whichever is earlier) e.g., a subscriber entering at age of 25, can exit at age of 40 and a subscriber entering at age of 50 can exit at 60 or on retirement age. The Tier II account, however, does not have any lock-in period.

The money invested in the National Pension System (NPS) is managed by professional Pension Fund Managers (PFMs) appointed by the Pension Fund Regulatory and Development Authority (PFRDA). These fund managers invest the contributions across asset classes such as equity, corporate bonds, government securities, and alternative investments, ensuring transparency and professional management to optimize returns.

Tax Benefit on contribution under section 80 CCD(1): Claim a tax deduction on contributions up to ₹1.5 Lakh per year. This is available only under old tax regime

Tax benefit on voluntary contribution under section 80 CCD(1B): Get an additional deduction on voluntary contribution of upto ₹50,000. This is available only under old tax regime

Tax Benefit on contribution from salary under section 80 CCD(2): A benefit exclusively for salaried individuals where contributions are routed through the employer. This is available under both the old and new tax regime. Tax Deduction on contribution upto 14% of basic salary under new tax regime and 10% of basic salary under old tax regime (max. limit of ₹ 7.5 Lakh).

Maximum deduction allowed:

• 10% of basic salary for salaried individuals under old tax regime; 14% of basic salary for salaried individuals under new tax regime
• 20% of gross total income for self -employed individuals