NPS is an easily accessible, low cost, tax-efficient, flexible and portable retirement savings
account. Under the NPS, the individual contributes to his retirement account and also his
employer can also co-contribute for the social security/welfare of the individual. NPS is
designed on Defined contribution basis wherein the subscriber contributes to his account, there
is no defined benefit that would be available at the time of exit from the system and the
accumulated wealth depends on the contributions made and the income generated from
investment of such wealth.
The greater the value of the contributions made, the greater the investments achieved, the
longer the term over which the fund accumulates and the lower the charges deducted, the
larger would be the eventual benefit of the accumulated pension wealth likely to be.
Contributions + Investment Growth – Charges = Accumulated Pension Wealth
(Individual contribution as well as co-contribution from Employers)