NPS

NPS

The primary purpose of the National Pension System (NPS) was to offer a better return on investment for long-term retirement funds. You can receive a return on NPS depending on the quantum of contribution. The government pension scheme, in the earlier avatar, was restricted to people working for government departments or public sector undertakings. The amount of pension was defined as 50% of the last drawn salary. The burden of funding the gap in pension fund availability and needs would become a part of the government’s annual budget. NPS has taken this burden off the government's shoulders and opened the opportunity of saving for retirement to all Indian Citizens including NRIs. Thus, you can now benefit from the country’s economic growth over the decades until your retirement. NPS also lets you invest in the relative safety of fixed-income government securities if you want to avoid equity market risks.