National Pension System (NPS)
The National Pension System is a government‑backed retirement savings scheme designed to provide financial security in your post‑retirement years.
Flexible Contributions: You can invest regularly or occasionally, depending on your financial goals.
Tax Benefits: Contributions qualify for deductions under Section 80C and an additional ₹50,000 under Section 80CCD(1B).
Market‑Linked Growth: Funds are professionally managed, offering exposure to equity, corporate bonds, and government securities.
Retirement Corpus & Pension: At maturity, a portion can be withdrawn as a lump sum, while the rest is converted into a monthly pension.
Frequently Asked Questions
Find answers to your common questions about National Pension System.
NPS is a government‑backed retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority). It helps individuals build a retirement corpus and receive a steady pension post‑retirement.
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Any Indian citizen between 18 and 70 years of age can open an NPS account.
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Both salaried and self‑employed individuals are eligible.
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Tier I Account: Mandatory retirement account with tax benefits.
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Tier II Account: Voluntary savings account with flexible withdrawals (no tax benefits)
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Deduction up to ₹1.5 lakh under Section 80C.
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Additional deduction of ₹50,000 under Section 80CCD(1B).
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Employer contributions are also deductible under Section 80CCD(2).
Subscribers can choose from:
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Equity (E)
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Corporate Bonds (C)
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Government Securities (G)
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Alternative Assets (A) You can opt for Active Choice (self‑allocation) or Auto Choice (life‑cycle fund).
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At age 60, you can withdraw up to 60% of the corpus as a lump sum.
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The remaining 40% must be used to purchase an annuity, which provides a monthly pension.
Partial withdrawals (up to 25% of contributions) are allowed after 3 years, for specific purposes like higher education, marriage, or medical treatment.
Yes. NPS is regulated by PFRDA, and funds are managed by professional pension fund managers. However, returns are market‑linked, so they may vary.
If you have more questions, feel free to reach out via our contact form or chat with us directly. We’re here to help guide you through your investment journey.
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Vatsalya NPS
Vatsalya NPS is a specialized variant of the National Pension System, tailored to secure the future of dependents and loved ones.
Family‑Focused Planning: Designed to extend retirement security benefits beyond the individual subscriber.
Long‑Term Wealth Creation: Encourages disciplined savings with the same tax advantages as NPS.
Custom Allocation: Offers flexibility in choosing asset classes to balance growth and safety.
Peace of Mind: Ensures that your family’s financial well‑being is safeguarded through structured retirement planning.
Frequently Asked Questions
Find answers to your common questions about National Pension System.
Vatsalya NPS is a special variant of the National Pension System designed to allow parents/guardians to open and manage NPS accounts for their minor children. It extends the retirement savings discipline to the next generation.
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Parents or legal guardians can open accounts for children below 18 years of age.
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Once the child turns 18, the account is converted into a regular NPS account under their name.
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- Early start: Corpus building begins at a young age.
- Tax benefits: Parents can claim deductions under Section 80C and 80CCD(1B) for contributions.
- Longer compounding period: Investments grow over decades, maximizing retirement wealth.
- The account ownership shifts to the child.
- They can continue contributions as a regular NPS subscriber.
- The accumulated corpus remains intact and continues to grow.
- Child’s birth certificate
- Guardian’s KYC documents
- and PAN/Aadhaar.
Yes. It is regulated by PFRDA, just like regular NPS, and managed by professional pension fund managers.
If you have more questions, feel free to reach out via our contact form or chat with us directly. We’re here to help guide you through your investment journey.