New Pension Scheme (NPS)

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme initiated by the Government of India. Designed to encourage individuals to systematically save for their retirement, NPS offers a market-linked investment approach, ensuring both security and growth. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Key Features of NPS

01

Flexible Contributions

Subscribers can decide their contribution amount and frequency.

02

Investment Choices

• Active Choice: Subscribers select their preferred asset allocation.
• Auto Choice: Asset allocation is determined based on the subscriber's age.

03

Low Cost

NPS is one of the most cost-effective pension schemes globally.

04

Portability

Accounts are portable across jobs and locations.

05

Tax Benefits

•Section 80CCD(1): Deduction up to ₹1.5 lakh for employee's own contribution.
•Section 80CCD(1B): Additional deduction up to ₹50,000 for contributions to Tier I account.
•Section 80CCD(2): Deduction on employer's contribution up to 10% of salary (Basic + DA) for private employees and 14% for government employees.