National Pension Scheme

National Pension Scheme for a retirement plan that stays disciplined.

The National Pension System (NPS) helps investors build a retirement corpus through disciplined long-term investing while offering tax benefits and a regulated pension framework. Choice Wealth helps you understand where NPS fits within your broader retirement strategy.

Start your NPS journey

Share a few details. Our wealth team will connect for a retirement context discussion around where NPS fits, contribution rhythm, tax context, and account choice.

Retirement discipline

Retirement doesn't start at 60. It starts with today's decisions.

The retirement corpus you rely on tomorrow is shaped by the investment habits you build today. Consistency often matters more than timing.

01

Active income has a timeline. Retirement doesn't.

02

Small contributions can create a meaningful retirement corpus over time.

03

The earlier retirement investing begins, the longer compounding can work.

NPS basics

What isthe NPS?

The National Pension System (NPS) is a market-linked retirement solution designed to help investors build a retirement corpus through disciplined long-term contributions.

A regulated, disciplined route to a retirement corpus, not a one-time transaction.

Regulated by PFRDAMarket-Linked Investment StructureActive & Auto Choice AvailableExit Governed by NPS Rules.
Retirement role

NPS is not just a tax-saving transaction.

Tax savings are only one part of the story. NPS is designed to build retirement discipline through consistent long-term investing.

01

Contribution discipline

Build a monthly or annual retirement rhythm.

02

Pension layer

Create a dedicated retirement-focused allocation.

03

Tax context

Evaluate benefits based on your regime and contribution route.

04

Review rhythm

Revisit contribution, asset mix and retirement gap regularly.

Tax context

NPS tax benefits need context, not slogans.

NPS tax benefits depend on tax regime, employment type, contribution route, income level and prevailing rules. Review the context before assuming the benefit.

Section 80CCD(1)

Individual Contribution

Maximum tax deduction

Up to ₹1.5 lakh per financial year

Eligible individuals

Salaried: Up to 10% of Basic Salary. Self-Employed: Up to 20% of Gross Total Income

Old Tax Regime
Section 80CCD(1B)

Additional Voluntary Contribution

Maximum tax deduction

Additional ₹50,000 over and above the ₹1.5 lakh limit

Eligible individuals

All NPS subscribers making voluntary contributions

Old Tax Regime
Section 80CCD(2)

Employer Contribution

Maximum tax deduction

Up to 10% of Basic Salary (Old Tax Regime). Up to 14% of Basic Salary (New Tax Regime). Subject to an overall tax-exempt limit of ₹7.5 lakh per financial year

Eligible individuals

Salaried employees receiving employer contributions

Old & New Tax Regime
Account structure

Tier I builds retirement discipline. Tier II adds flexibility.

NPS has two account layers. Tier I is the primary retirement-focused account. Tier II is optional and more flexible, available only with an active Tier I account.

Tier I

Primary retirement account, rules-based withdrawal, tax benefits may apply.

Tier II

Optional investment account with flexible withdrawals and limited tax benefits, where applicable.

PRAN

The subscriber identity that connects the account journey.

Investment choice

One gives you control. The other adjusts automatically.

NPS lets eligible subscribers choose between Active Choice and Auto Choice. Active Choice allows allocation across approved asset classes within prescribed caps. Auto Choice uses lifecycle allocation that changes with age.

Active Choice

Choose your own allocation across Equity, Corporate Bonds, Government Securities and Alternative Assets within NPS limits.

Auto Choice

Asset mix follows lifecycle rules based on age and selected lifecycle option.

Review point

Asset allocation should reflect age, risk comfort, retirement horizon and existing portfolio.

Choice Wealth role

Helping you make NPS part of a stronger retirement journey.

Retirement is shaped by consistent decisions over time, not by opening one account. Choice Wealth helps you understand where NPS belongs within your broader retirement strategy and how it can work alongside your existing investments.

01Understand where NPS fits

Understand where NPS fits within your long-term retirement journey.

02Build a contribution rhythm

Build a contribution rhythm that aligns with your income stage.

03Compare Tier I and Tier II

Compare Tier I and Tier II to understand the role of each account.

04Understand Active & Auto Choice

Understand Active Choice and Auto Choice before selecting an option.

05Review applicable tax provisions

Review the applicable tax provisions and contribution options.

06Revisit as your career evolves

Revisit contributions and NPS allocation as your career evolves.

Next steps

A simple path from enquiry to retirement clarity.

Your details help us route the right conversation and avoid generic follow-up.

01

Share details

Age, employment, NPS status and goal.

02

Wealth team connects

A Choice Wealth representative reaches out.

03

Retirement context is understood

Income, contribution ability, tax context and goals.

04

NPS fit is reviewed

Tier I, Tier II, Active/Auto Choice and contribution route.

05

Broader plan is discussed

NPS, MF, insurance, fixed income and retirement gap where relevant.

06

Action after confirmation

No action without document review and user confirmation.

Retirement review

Your Future Self
Will Thank You

FAQs

Questions investors ask
about NPS.

Scroll through, each answer opens on its own as you move down the list.

01What is NPS?

NPS stands for National Pension System. It is a regulated, market-linked, defined-contribution retirement savings and pension route for eligible subscribers.

02Is it National Pension System or National Pension Scheme?

The official term is National Pension System. Many users search for National Pension Scheme, so both terms refer to the same route.

03Who can invest in NPS?

Eligible Indian citizens, including resident and non-resident citizens, and OCIs may subscribe subject to age, KYC and applicable rules. Final eligibility should be checked before account opening.

04What is PRAN?

PRAN stands for Permanent Retirement Account Number. It is the unique account identity used for NPS contributions, statements, portability and service requests.

05What is Tier I?

Tier I is the primary retirement-focused NPS account. It is rules-based and designed for long-term retirement contribution discipline.

06What is Tier II?

Tier II is an optional voluntary NPS account available to users with an active Tier I account. It is generally more flexible in withdrawal access.

07What is the difference between Tier I and Tier II?

Tier I is the retirement-focused account where tax benefits may apply as per rules. Tier II is optional and more flexible, but generally does not carry the same NPS tax benefit in public explanation.

08What is Active Choice in NPS?

Active Choice allows subscribers to select allocation across permitted asset classes within prescribed limits. It requires the user to understand risk and allocation choices.

09What is Auto Choice in NPS?

Auto Choice is a lifecycle-based option where the asset mix changes with the subscriber’s age and selected lifecycle path.

10What are NPS tax benefits?

NPS tax benefits depend on the tax regime, employment type, contribution route and current rules. A tax-context review is important before making a claim.