4 Easy Steps to Follow and Join the National Pension System

During the tenure of employment, an individual will regularly receive a salary every month and hence it will be easy to meet both the ends. But post-retirement, the scenario will change as there will be no regular inflow of money to meet the requirements of retired people. To ease the lives of the people post-retirement, the government of India decided to roll out a scheme under the name National Pension System or NPS as it is popularly called.

What is the National Pension System?

As the name suggests, the National Pension System is a kind of voluntarily defined contribution pension system introduced by the Government of India.

The government decided to stop the defined benefit pensions offered to all its employees who joined after January 1, 2004. So, it chalked out a plan to roll out a pension scheme to benefit its employees who joined post-January 2004, so that they can voluntarily contribute towards the retirement scheme and build a corpus which comes in handy post-retirement.

Initially, the scheme was just limited to only government employees but later it was thrown open to all the citizens of India in 2009 and all those who are in the age group between 18 to 65 years can contribute towards this pension scheme.

The National Pension System is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

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