The National Pension Scheme of India is referred to as NPS. The Central Government created this contribution scheme. Employees in the public, private, and unorganized sectors are covered by the NPS. By depositing a specific percentage of the total amount and reaping the rewards of the investment after retirement, it encourages workers to save money while they are still employed.
When it was first introduced in 2004, it was exclusively open to Central Government employees. However, in 2009, it was expanded to include all sectors, with the exception of the military forces. It is predicated on a distinct Permanent Retirement Account Number (PRAN) that is assigned to every NPS member at the time of enrollment.
Throughout their working lives, NPS workers are allowed to make regular contributions to a pension account. When they retire, they can take a portion of their savings as a lump payment and use the rest to purchase an annuity, which will provide them with a steady income. The following are the main goals of NPS:
- Income for the elderly
- Long-term, reasonable returns
- financial stability following retirement
