The National Pension System (NPS) is one of the most effective retirement planning tools in India today.
It combines the discipline of long-term saving, market-linked growth, and tax efficiency — all within a government-regulated framework.

Whether you are a salaried employee, self-employed professional, NRI, or a corporate participant,
NPS allows you to build a pension corpus and enjoy a steady post-retirement income.

In this comprehensive guide, we’ll explain everything you need to know about NPS — how it works, how to invest, and how it fits into your overall financial plan.

1. What is the National Pension System (NPS)?

The National Pension System (NPS) is a voluntary, defined contribution pension scheme launched by the Government of India and regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

It aims to help Indian citizens accumulate savings during their working life and receive pension income after retirement.

When you invest in NPS, your contributions are invested in a mix of equity, corporate debt, and government securities, managed by professional fund managers.