All About National Pension Scheme (NPS)

National Pension Scheme (NPS)

The National Pension System is a savings scheme which aims at providing monthly income after the retirement of the investor. Here employees need to invest in NPS while they are employed. The entire accumulated throughout the duration of the scheme is broken down through an annuity plan, and then paid out to the investor every month post retirement.

This scheme is secure and reliable source of monthly income for retired employees of state and central government organizations, employees of MNCs, and citizens who are employed in the unorganized sectors.

• For employees of the central or state government organizations, 10% of monthly income is deducted and an equal amount is contributed by the government.
• For employees of MNCs or those from the unorganized sectors, NPS is just like other long-term saving schemes and it benefits them after the completion of the pre-determined tenure, according to the scheme.