National Pension Scheme (NPS)

The National Pension System (NPS) is a government-backed retirement savings scheme that offers several benefits. It provides a flexible and low-cost way to build a retirement corpus over time. NPS allows you to invest in a mix of equity, corporate bonds, and government securities, offering the potential for growth while managing risk. Contributions to NPS are eligible for tax deductions under Section 80C and an additional deduction under Section 80CCD(1B) upto 50,000 per annum , providing significant tax savings. Upon retirement, you can withdraw a portion of the corpus tax-free, with the remaining amount used to purchase an annuity, ensuring a regular income stream during retirement.

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