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Plan your hassle-free leisure years with NPS.
Save towards a secure retired life.
Home > Retail NPS
4 Reasons to Start NPS.
Small savings today can lead to powerful long term gains with retail NPS
Tax Benefit
Tax Benefit on Voluntary Contribution u/s 80 CCD(1B)
Flexible
Flexible contribution and asset allocation
Low-Cost Investment
One of the lowest Fund Management Cost(FMC) across actively managed funds
Attractive Returns
Market-linked growth, managed by investment experts.
Quick Glimpse Into NPS
Save more and Pay less tax with NPS
Tax Benefit on contribution under section 80 CCD(1): Claim a tax deduction on contributions up to ₹1.5 Lakh per year. This is available only under old tax regime
Tax benefit on voluntary contribution under section 80 CCD(1B): Get an additional deduction on voluntary contribution of upto ₹50,000. This is available only under old tax regime
Maximum deduction allowed:
The NPS provides subscribers with a flexible way to save for both long-term retirement goals and short-term financial needs. It offers two types of accounts:
1. Tier I Account
2. Tier II Account
| Tier I | Tier II |
|---|---|
|
Also known as Pension Account |
Also known as Investment Account |
|
Mandatory to open in order to join NPS |
Optional account, can be opened later as well |
|
Withdrawal from this account is conditional |
No restrictions on withdrawal |
|
Tax benefits u/s 80CCD(2), 80CCD(1B), 80CCD(1) |
No tax benefits on investment |
|
Contribution required to open account: ₹ 500 |
Contribution required to open account: ₹ 1000 |
|
Minimum subsequent contribution: ₹ 500 |
Minimum subsequent contribution: ₹ 250 |
|
Minimum annual contribution: ₹ 1000 |
Minimum annual contribution: Nil |
Alternate Assets – A small portion of your NPS portfolio can be invested into regulated alternatives such as REITs and select InvIT instruments within PFRDA defined caps.
Subscribers have an option to invest in multiple schemes available in below frameworks:
i. Multiple Scheme Framework (MSF)– Composite schemes designed by Pension Funds as per the risk appetite and goals of various customer segments.
HDFC Pension has launched the following schemes under MSF:
A growth-oriented pension fund for investors with high-risk appetite. This scheme offers upto 100% equity exposure with potential for high growth and wealth accumulation
A fund designed for growth-seeking investors, offering diversification across equity, debt. The fund balances growth potential through equity by combining capital stability through high quality debt with long-term wealth creation opportunities
ii. Common Schemes: A standardized NPS investment structure common for all Pension Funds.
| Asset | Maximum allocation |
|---|---|
|
E-Equity |
75% |
|
C-Corporate Bonds |
100% |
|
G-Government Securities |
100% |
Auto Choice (Set it, Forget it): Subscriber needs to select one of the Life Cycle Funds. The asset allocation gets adjusted basis the age of subscriber.
| Life Cycle | Age-wise allocation |
|---|---|
|
Life Cycle 75 – High |
(15E / 55Y) – Age-wise breakdown |
|
Life Cycle – Aggressive |
(35E / 55Y) – Age-wise breakdown |
|
Life Cycle 50 – Moderate |
(10E / 55Y) – Age-wise breakdown |
|
Life Cycle 25 – Low |
(5E / 55Y) – Age-wise breakdown |
When can I withdraw from my NPS account?
| Type of Exit/Withdrawal | Conditions | Withdrawal Rules | Tax Implications |
|---|---|---|---|
|
Normal Exit |
After completion of 15 years or Age 60 whichever is earlier |
|
Upto 60% of total corpus withdrawn as lumpsum is tax free |
|
Premature Exit (Before Age 60) |
Before 60 years, 5‑year lock‑in applicable for government subscribers only |
|
Upto 60% of total corpus withdrawn as lumpsum is tax free |
|
Partial Withdrawal |
Up to 4 withdrawals allowed till age 60 with a minimum 4‑year gap. After age 60, withdrawals allowed with a 3‑year gap. |
Withdraw up to 25% of own contributions (not entire corpus) allowed for specific needs: education, medical treatment, home purchase. |
Tax-free |
|
Exit on Demise |
Death of the subscriber |
In the event of the unfortunate death of an NPS subscriber, the accumulated corpus can be claimed by the nominee/legal heir |
Tax-free for the nominee |
You start investing a fixed amount in NPS regularly. This money is managed by a Pension Fund Manager (PFM). The PFM invests your money in various assets like stocks, bonds, government securities and alternate investments (REITS, Selected InVits, Debt AIFs etc.)
When you retire, a portion of your accumulated savings is used to buy you a pension, providing a regular income. The remaining amount is paid to you as a lump sum. You can choose how much to invest, how often to invest, and the type of pension you want.
Start an NPS account
5 simple steps to start your NPS account
You'll need to choose a Central Recordkeeping Agency (CRA). CRAs handle various aspects of your account, including contributions, withdrawals, and providing account statements. Please note Corporate contributions will begin only after your employer enables your PRAN for Corporate contributions.
Have questions about NPS?
Our team is here to help!
HDFC Pension is here to solve all your NPS concerns! Our knowledge center is a comprehensive one-stop shop for all your NPS queries.
FAQs
Retail / Individual NPS (National Pension System) is a voluntary retirement pension scheme where individual (self-employed, Professionals and salaried) contributes to NPS account on their own to build a pension/Investment corpus.
Any citizen of India, resident or non-resident, can subscribe to the National Pension System (NPS). However, Children between 0 to 18 years can also join under an exclusive category called NPS Vatsalya. Applicants must be between 0-85 years of age. Subscribers / Parents must comply to standard KYC norms.
National pension scheme offers multiple benefits:
Yes, the age limit for enrolling in Individual NPS is between 18 and 85 years. For NPS Vatsalya you can start anytime between age 0-18.
Currently, there are 2 types of schemes under NPS
1) Common Scheme: These are Existing schemes.
For example
a) Active choice
b) Auto choice. All these are now referred as Common schemes.
2) Schemes Under MSF – Launched on 1st October ’25. These are hybrid schemes launched by Pension funds. For example -HDFC PF NPS Equity advantage fund & HDFC PF NPS Surakshit Income fund
Yes, under Individual NPS, you can explore Pension Fund Manager (PFM) from the list of PFRDA-registered fund managers. You also have the option to change your PFM once in a year in CSF (Common Scheme Fund) or the default NPS. However in MSF you can have multiple schemes.
