NPS in one page
A market-linked retirement scheme with equity and debt options, a lock-in until retirement, and a portion that must buy an annuity at the end. Costs are among the lowest available anywhere, and there are tax benefits available under both regimes for certain contributions.
What it means
A market-linked retirement scheme with equity and debt options, a lock-in until retirement, and a portion that must buy an annuity at the end.
Why it matters to a household
Costs are among the lowest available anywhere, and there are tax benefits available under both regimes for certain contributions.
Where it trips people up
Underestimating the annuity requirement. A share of the corpus must be converted into an annuity, and annuity rates decide what that money is worth.
In an Indian household
It works best as one part of a retirement plan rather than the whole of it, precisely because of the withdrawal restrictions.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
NPS in one page
A market-linked retirement scheme with equity and debt options, a lock-in until retirement, and a portion that must buy an annuity at the end.
Why does it matter?
Costs are among the lowest available anywhere, and there are tax benefits available under both regimes for certain contributions.
What do people usually get wrong?
Underestimating the annuity requirement. A share of the corpus must be converted into an annuity, and annuity rates decide what that money is worth.
Is there anything India-specific?
It works best as one part of a retirement plan rather than the whole of it, precisely because of the withdrawal restrictions.