National Pension System (NPS) is a pension cum investment scheme initiated by the Government of India to provide old age security to Indian citizens. It is a pure retirement pension plan, in which you can get a stable income with tax benefits after your retirement and it offers you the option to choose from different pension plans based on your risk profile. You can make an annual contribution till you turn 65 years of age and you need to be at least 18 years to invest in NPS.

The money you deposit in NPS is invested by pension fund managers in equity, government securities, corporate bonds, and alternative investment funds.  It also allows you to invest in a mix of asset classes. When the subscriber reaches the age of retirement, this sum is utilized by them to buy an annuity or a monthly pension plan.

NPS is a low-cost pension product, which is professionally managed by pension funds regulated by the central government’s Pension Fund Regulatory and Development Authority (PFRDA).