NPS – National Pension System is a pension cum investment scheme launched by the Government of India to provide old age security to Indian citizens. NPS is a Pension scheme is launched by the Government with the objective of providing pension to the common man as well as to those in government service. The scheme is expected to provide attractive long term savings in the form of pension for every citizens. The plan also helps every citizens to effectively plan retirement through safe and controlled market based income.

The pension is calculated based on the investment made by the person joining the NPS. After the age of 60, The NPS Member shall receive a fixed amount in a single installment depending on the investment and a pension commensurate with the remaining amount.

NPS is a Government-controlled secure investment scheme. Depending on the amount you invest, after the age of 60 a certain amount (40% to 60% of the total fund) is withdrawn in one lump sum and the remaining amount is received as a pension. The first minimum deposit is only Rs.500. You can invest up to Rs 500 or above Rs 49,000 in subsequent months. Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory for the NPS Scheme. National Pension System Trust – NPST formulated by the PFRDA, is the registered owner of all assets under the Nation Pension System.

Upon completing successful registration, every subscriber will be issued a Permanent Retirement Account Number (PRAN) under the National Pension System. NSDL-CRA (Central Agency for Record Keeping) will send an email alert and SMS confirmation to the registered email ID and mobile number of the Subscriber after successful generation of PRAN. Thereafter the subscriber contributes to the NPS periodically and regularly for creating a retiring corpus.

National Pension System is a voluntary defined contribution pension system in India. which has the following broad objectives:

Benefits of National Pension System

  • A source of old age income
  • Fair market based returns (in long term)

Who can join the Pension System.

Any citizen of India (resident/Non-resident) of age between 18 to 65 years can join the Pension System .

Some other Features

  • Investment is not mandatory every month. Facility to invest in intermittent months.
  • Investing over a longer period of time leads to a better return.
  • Facility to withdraw fixed percentage after three years.
  • Special benefit to income tax payers.
  • Facility to manage and close the account online.
  • Funds are transferred to the bank account you entered when you close.

Document Requirements

Aadhaar, Mobile Number (Aadhaar Registered), Photo, PAN card and a Cheque (Cancelled).

Register Through Government of India authorized Common Service Centres. To locate your nearest Common Service Centre use the tab below:

Pension Calculator ;

A customizable pension calculator is available for an overview of the tentative Pension and Lump Sum amount that a NPS subscriber may receive on maturity or 60 years of age based on contributions, and also details of other returns. Which would help a subscriber to plan the investment, use the tab below for the calculator:

Date: March 14, 2022