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The National Pension System (NPS), which is a voluntary and government-backed retirement savings plan, allows individuals to build a steady corpus for their post-retirement years. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). NPS gives investors the flexibility to decide where their money is invested — in equity, corporate debt, or government securities — depending on their comfort with risk and return expectations.

How NPS Works

NPS functions as a long-term retirement account. You contribute regularly during your working years, and the amount grows through market-linked returns. On reaching the age of 60, you can withdraw up to 60% of your accumulated corpus tax-free, while the remaining 40% must be used to purchase an annuity

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