NPS (National Pension System)

Also known as: national pension system, national pension scheme

The National Pension System (NPS) is a low-cost, market-linked retirement scheme offering an additional tax deduction (under 80CCD(1B)). It invests across equity and debt with age-based allocation, but a portion must be annuitised at retirement (the “annuity catch”). Useful for disciplined, tax-efficient retirement saving.