GreenFunds
Money word, in plain English

NPS

Also called National Pension System

The National Pension System, a low-cost, government-regulated retirement account you build yourself.

Retirement Figures verified 2026-10-26

Example. By putting money into the NPS each month during your working years, you build a pot that gives you a pension after 60.

Questions people ask

What is the full form of NPS?

NPS stands for the National Pension System. It is a voluntary retirement savings account, regulated by the pension regulator PFRDA, that you pay into during your working years to build a pension for later.

What is the NPS tax benefit?

On the old tax regime, NPS gives an extra deduction of up to 50,000 rupees, over and above the usual 1.5 lakh rupee limit. It is not available on the new regime, so check your regime and the current rules first.

What happens to NPS money at 60?

At 60, at least 40% of the built-up amount must buy an annuity that pays a regular pension for life, and the rest can usually be taken as a lump sum. Withdrawal rules have changed recently, so confirm the current PFRDA position.

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