National Pension System - retirement savings scheme. Invest till 60. 60% lump sum (tax-free), 40% mandatory annuity. Min ₹500/year. Equity exposure up to 75%.
NPS expected returns?+
Long-term average: 9-12% (mix of equity + debt). Historical: equity NPS funds returned 13-15% over 10 years. Conservative funds 7-9%. No guaranteed returns.
Tier 1: Mandatory, 60-year lock-in, tax benefits. Tier 2: Optional, withdraw anytime, no tax benefits. Most use Tier 1 for retirement, Tier 2 for liquidity.
How to open NPS account?+
Visit enps.nsdl.com or banks (SBI, HDFC, ICICI). PRAN allotted. Aadhaar + PAN required. Min ₹500/year for Tier 1. Choose fund manager and allocation.
NPS fund managers options?+
8 fund managers: SBI, LIC, UTI, ICICI, Kotak, HDFC, Aditya Birla, Tata. Choose any. Switch anytime free. Performance varies - check past returns before choosing.
Can I withdraw NPS before 60?+
Partial: 25% after 3 years for specific reasons (illness, education, home). Premature exit allowed: 80% must buy annuity, 20% lump sum. Better to continue till 60.
NPS at retirement?+
At 60: 60% lump sum (tax-free), 40% must buy annuity from 11 insurers. Annuity gives monthly pension for life. Can defer up to age 75.