National Pension System: Features, Benefits

April 17, 2021
What is NPS?

NPS is a government-sponsored pension System. Originally launched in January 2004 for government employees and then in 2009, it was opened to all citizens. Hence, this pension System is open to employees from the public, private and even the unorganized sectors except those who serve in the armed forces on voluntary basis. Even NRIs can also invest in NPS.

Under this System, people invest in a pension account at regular intervals during the course of their employment and after retirement, the investors can withdraw a certain percentage of the accumulated fund. The NPS subscriber will get the remaining amount as a monthly pension post-retirement in form of annuities. NPS System is of enormous value for anyone who is in the private sector and requires a regular income after retirement. The National Pension System is portable across jobs and locations, with tax benefits under Section 80C and Section 80CCD.