What is National Pension System (NPS)?

The long goodie days are gone when could have had got a govt job and was assured of the pension as our country has now graduated to National Pension System (NPS) which is a defined contribution pension scheme now applicable to government employees, where the employee and the government make matching contributions to a fund of the employee’s choice, managed by licensed fund managers.

The NPS is also available for the general public to voluntarily contribute periodically and create a retirement corpus. Other voluntary retirement plans available include the Public Provident Fund and retirement plans offered by insurance companies and mutual funds. You can check ideal Retirement Savings Corpus here.

On retirement, the corpus accumulated in the NPS is used to buy an annuity offered by insurance companies. The annuity provides a pension to the annuity holder according to the terms of the annuity selected. The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator of the pension market.

Remember to bookmark us to get delivery stock tips and intraday tips to make money like professionals.