NPS is a voluntary, defined contribution retirement savings product introduced to promote old age income security.

• Under the NPS, individuals can accumulate a pension corpus during their work life to meet financial needs, post retirement. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.
• The subscribers may use the accumulated pension wealth under the scheme to purchase a life annuity from a life insurance company. Alternatively, depending on the age of the subscriber, a part of the wealth may be withdrawn as lump-sum.