National Pension Scheme (NPS)

You put in some money while you’re working, so later, when you stop working...you have something to live on. Makes sense, doesn’t it?

Everyone talks about saving for retirement, right? But most people don’t actually know how. That’s where NPS — National Pension Scheme — steps in. Simple idea.

Started by the Government of India, and kept in check by the regulator PFRDA, NPS is meant for everyone — not just government employees anymore. Private-sector folks, self-employed professionals — anyone can open an NPS account today.

Two Accounts You Should Know About:

1. Tier I: The main account where your retirement money grows. You can’t touch this money easily — but you get tax benefits.

2. Tier II: This works more like a flexible savings account. You can withdraw anytime — but no tax perks here.
   

What Happens to Your Money?

Your contributions don’t just sit idle. They get invested across things like:

• Equity (shares) — for growth potential.

• Corporate Bonds — for regular income.

• Government Bonds — for safety.

• Other Assets — like REITs or InvITs.

You can pick the mix yourself or let NPS do it based on your age (that’s called Auto Choice).

Who Handles All This?

Not you — thankfully. Professional fund managers (called PFMs) appointed by the government take care of where the money goes and how it grows.

Why Do People Like NPS?

✔ Easy to open.
✔ Helps cut your tax bill today.
✔ Builds a solid fund for retirement tomorrow.
✔ You control risk level.

If you want your retirement sorted — without daily market stress — NPS could make sense.

Remember: Like all market-linked investments, returns from NPS are not guaranteed and may fluctuate based on market conditions. Before making any investment decision, it is advisable to understand the scheme features fully or consult with a registered financial advisor like Monitrix for guidance that suits your personal financial goals.