National Pension Scheme
The National Pension System (NPS) is a government-sponsored pension scheme that was started in 2004 for all government employees. In 2009, it was opened to all citizens. It signifies a move from a defined-benefit to a defined-contribution pension scheme. It offers a host of investment options for subscribers. It also allows subscribers to decide where the pension fund is invested. The scheme diminishes the government’s pension liabilities. Subscribers can withdraw a limited amount before retirement. Any Indian citizen between the ages of 18 and 60 can subscribe to the NPS. NRIs can also join the scheme. Tier I of the NPS is a basic retirement scheme which does not allow withdrawal before retirement.