Senior CitizensCentral Scheme

National Pension System

A voluntary, long-term retirement savings scheme regulated by PFRDA that builds a pension corpus with market-linked returns and tax benefits.

Ministry of Finance / PFRDAUpdated 14 February 2025

Overview

The National Pension System is a government-sponsored, voluntary retirement savings scheme regulated by the PFRDA.

Subscribers contribute regularly during their working years into a market-linked pension account with professional fund management.

On retirement, a portion is withdrawn as a lump sum and the rest is used to buy an annuity that provides a regular pension.

Any Indian citizen — resident or non-resident — between 18 and 70 years of age.
Available to salaried employees, self-employed individuals and NRIs.
KYC compliance with a point-of-presence (bank or financial institution) is required.

Market-linked growth through diversified equity, corporate and government bond funds.
Additional tax deduction of up to ₹50,000 under Section 80CCD(1B), over and above 80C.
Low cost, portability across jobs and locations, and flexible contribution amounts.

Aadhaar or PAN card

Bank account details for auto-debit

Recent passport-size photograph

Cancelled cheque

1Open an NPS account online through the eNPS portal or a registered point-of-presence.
2Choose your fund manager and investment mix (Active or Auto choice).
3Complete KYC and receive your Permanent Retirement Account Number (PRAN).
4Contribute regularly and track your corpus through the CRA portal or mobile app.