Tax efficiency
Eligible contributions can help reduce taxable income.
NATIONAL PENSION SYSTEM
Invest today for a steady retirement tomorrow
A simple, tax-efficient way to build your retirement corpus with discipline and ease.
Why should you consider NPS?
A structured way to save, invest and prepare for retirement.
Market-linked growth
Invest across equity and debt for long-term growth.
Regulated ecosystem
Closely monitored by PFRDA with defined intermediaries and governance.
Retirement income
Build corpus during working years and receive annuity income post-retirement.
How does NPS work?
Five clear steps take you from opening an account to building and using your retirement corpus.
Choose your NPS route
Pick the route that matches your profile and discover the right NPS model, onboarding path and next steps in a simple way.
Individual NPS
For eligible individuals who want to open and manage their own retirement account. Suitable for salaried professionals, self-employed individuals and other eligible subscribers.
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Corporate NPS
Designed for employees whose employer offers NPS as part of the benefits structure. It can combine employee and employer contributions with payroll-linked convenience and potential tax efficiency.
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Government NPS
Applicable to eligible central and state government employees covered under the NPS framework. The onboarding process, contribution structure and servicing follow the relevant government employment route.
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NPS Vatsalya
For parents or guardians who want to start long-term retirement-oriented savings early for a minor. The account is managed by the guardian until the child reaches the prescribed age.
Know moreNPS at a glance
Five essentials, made simple. Tap a card to reveal more.
FAQs
Any Indian citizen within the eligible age bracket can open an NPS account, subject to completion of KYC and other applicable requirements. Eligible NRIs and OCIs may also open an NPS account as per prevailing rules.
PRAN stands for Permanent Retirement Account Number. It is the unique account number allotted to an NPS subscriber and remains portable across jobs and locations.
| Particulars | Tier I Account | Tier II Account |
|---|---|---|
| Purpose | Main retirement / pension account under NPS. | Voluntary add-on investment account linked to Tier I. |
| Tax Benefit | Eligible for deductions under applicable NPS tax provisions, subject to rules. | Generally does not provide the same individual tax deduction benefit as Tier I. |
| Withdrawal Flexibility | Restricted withdrawals as it is designed for retirement savings. | More flexible withdrawals, subject to applicable rules. |
| Account Requirement | Mandatory primary account to participate in NPS. | Optional account, available only after / along with Tier I. |
| Best Suited For | Long-term retirement corpus creation and pension income. | Flexible market-linked investing within the NPS framework. |
NPS contributions may qualify for tax deductions under applicable sections such as Section 80CCD, including the additional deduction under Section 80CCD(1B), subject to the tax regime and prevailing income-tax rules.
At retirement or exit, the subscriber can withdraw the permitted lump sum portion and use the required portion of the corpus to purchase an annuity from an empanelled Annuity Service Provider, which then provides regular pension income.