Retail NPS
What is NPS?
The National Pension System (NPS) is a voluntary, government-initiated pension scheme designed for individual citizens of India viz. salaried professionals, self-employed individuals, freelancers, gig workers, etc., who wish to plan and save for a financially independent retirement.
Whether you’re just starting your career or midway through your professional journey, NPS empowers you to build a substantial retirement corpus with the flexibility to contribute as per your convenience.
Key Features of Retail NPS
Open to All:
Available to all Indian citizens (Residents, NRIs, OCIs) between 18 and 70 years of age.
Two Account Types:
- Tier I Account: Default retirement account with tax benefits. For more information click here.
- Tier II Account: Optional, flexible savings account with no lock-in. For more information click here.
Flexible Contributions:
Invest as low as ₹500 to open and ₹1,000 per year to keep the account active. No fixed frequency or amount is mandated.
Choice of Investment Strategy:
Choose between:
- Active Choice: Decide your asset allocation
- Auto Choice: Let the system manage it based on your age.
To know more about investment choice, click here
Select Your Pension Fund Manager (PFM):
LIC Pension Fund is one of the trusted PFMs under NPS, offering disciplined, long-term growth with one of the lowest management fees globally.
Portability & Accessibility:
Your PRAN (Permanent Retirement Account Number) stays with you for life, no matter where you live or work in India.
Tax Benefits
Enjoy exclusive tax advantages under the Old Tax Regime and New Tax Regime:
| Feature | Old Tax Regime | New Tax Regime |
|---|---|---|
| Employee Contribution/ Self-Contribution/ NPS Vatsalya | Deduction up to ₹1.5 lakh under Section 80C & Additional deduction up to ₹50,000 under Section 80CCD (1B) | Not Applicable |
| Employer Contribution | Deduction up to 10% of (basic salary +DA) under Section 80CCD(2) | Deduction up to 14% of (basic salary + DA) under Section 80CCD(2) |
| Lump-sum Withdrawal | Up to 60% tax-exempt | Up to 60% tax-exempt |
| Annuity Purchase | Min 40% corpus used to purchase annuity is exempt from GST | Min 40% corpus used to purchase annuity is exempt from GST |
Retirement & Withdrawal Benefits
At retirement (on or after age 60):
- Withdraw up to 60% of your corpus tax-free
- Use at least 40% to buy an annuity plan and receive a monthly pension for life
Partial withdrawals are also allowed after 3 years for purposes like education, marriage, medical emergencies, buying a home, etc.
Why Choose LIC Pension Fund for Your Retail NPS Account?
- Backed by India’s most trusted financial institution – LIC
- Proven track record of long-term, competitive returns
- Low fund management fees
- Transparent, compliant and customer-focused service
Get Started Today!
Open your Retail NPS Account online in minutes with LIC Pension Fund and take a step towards a financially secure retirement. Click here to open your NPS account.