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Enrolling in a pension scheme is a reliable way to ensure financial security after retirement.
The NPS account is open to all Indian citizens aged between 18 and 70 years. (Representative Image)
The National Pension Scheme (NPS) is a government-backed retirement savings scheme in the country that helps individuals build a secure financial future. Designed for salaried and self-employed individuals, NPS encourages disciplined, long-term investment by offering market-linked returns and tax benefits. It allows partial withdrawals, ensures flexible contributions, and provides an annuity post-retirement.
With rising inflation and a lack of adequate social security, having a structured pension plan is more crucial than ever. NPS stands out as a reliable and low-cost option for those looking to accumulate wealth steadily for retirement while also reducing taxable income under Section 80C and 80CCD(1B).
Types of NPS Accounts and How to Open One Online
NPS offers two main types of accounts:
Tier-I Account (Mandatory): This is the primary retirement account with restrictions on withdrawals. Contributions made here are eligible for tax benefits under Section 80C (up to Rs 1.5 lakh) and 80CCD(1B) (additional ₹50,000). It’s meant for long-term retirement planning.
Tier-II Account (Optional): This is a voluntary savings account with no withdrawal restrictions. However, it doesn’t offer tax benefits unless the subscriber is a government employee.
NPS Accounts: Eligibility
The NPS is open to all Indian citizens between the ages of 18 and 70, making it accessible to a wide age group, from young professionals just starting their careers to older individuals planning a stable retirement.
Whether you are a salaried employee, self-employed, or even a freelancer, you can open an NPS account and start investing in your future.
The flexible age range ensures that even those who begin planning for retirement later in life still have the opportunity to build a corpus and enjoy the long-term benefits of a structured pension system.
How to Open an NPS Account Online
Opening an NPS account online is simple and can be done through the eNPS portal or banks and service providers known as Points of Presence (PoPs).
Steps to open through eNPS (official website):
Step 1: Visit https://enps.nsdl.com
Step 2: Click on “National Pension System” → “Registration”.
Step 3: Choose “Individual Subscriber”.
Step 4: Enter your Aadhaar or PAN details.
Step 5: Provide your personal, bank, and nominee details.
Step 6: Upload scanned copies of KYC documents and a photograph.
Step 7: Make the initial contribution (minimum Rs 500 for Tier-I).
Step 8: Set up a password and receive your PRAN (Permanent Retirement Account Number).
You can also access NPS through banks like SBI, HDFC, ICICI, or financial platforms such as Zerodha or Paytm Money. Once registered, you can manage investments, view statements, and make contributions easily online, making NPS a convenient option for retirement planning.
Opening an NPS account online is quick, paperless, and accessible anytime. It allows easy tracking, secure transactions, and convenient contributions, making retirement planning simple and hassle-free.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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