Retail NPS (Individual Subscriber)

Retail NPS is tailored for any Indian citizen aged 18–70 (recently extended up to 75), whether resident, non-resident, or an OCI. It’s designed for individuals not linked to an employer, offering a self-managed retirement savings account.

  • Eligibility:
    Must be KYC-compliant and contribute periodically during your working years.
  • Why Opt In:
    It provides a low-cost pension plan, asset diversification, portability across jobs and geographies, emergency withdrawal flexibility, and tax-efficient exit at retirement.
  • Tax Benefits:
    • Individuals can claim up to ₹1.5 lakh under Section 80CCD(1) (part of Section 80CCE limit).
    • An additional ₹50,000 deduction under Section 80CCD(1B) is exclusively available for NPS contributions—on top of the ₹1.5 L limit.
  • Exit Rules:
    • At around age 60, 60% of the corpus can be withdrawn as lump sum (tax-free if ≤ ₹5 lakh); remaining 40% must be used to buy an annuity.
    • Partial withdrawals (up to 25% of contributions) are allowed after 3 years for emergencies like education or medical.