Benefits of National Pension Scheme

The National Pension System (NPS) is a government-backed retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It is designed to provide a steady income post-retirement while offering significant tax benefits during your working years.

Key features of NPS:

Account Structure:
NPS offers two types of accounts:

• Tier I: This is a mandatory retirement account with restrictions on withdrawals.
• Tier II: A voluntary savings account with no withdrawal restrictions, offering greater flexibility.

Eligibility:
Any Indian citizen aged between 18 and 70 years can open an NPS account.

Tax Benefits:

• Contributions to NPS are eligible for deductions under Section 80C and Section 80CCD(1B), allowing you to claim up to Rs. 2 lakh in tax benefits annually.
• A portion of the maturity amount is tax-exempt, making it a tax-efficient investment option.

Pension Benefits:
Upon retirement, you can withdraw up to 60% of the corpus as a lump sum, while the remaining 40% is used to purchase an annuity, ensuring a regular income stream.

Market-Linked Returns:
NPS investments are managed by professional fund managers and offer market-linked returns, which can be higher than traditional investment options over the long term.

How to open an NPS account with Bajaj Finserv:

Opening an NPS account through Bajaj Finserv is a simple and user-friendly process. Follow these steps:

1. Visit the Bajaj Finserv website and navigate to the NPS section.
2. Use your registered mobile number and PAN to complete the KYC process.
3. Select your preferred pension fund manager and investment option (active or auto choice).
4. Make your initial contribution to activate the account.

Pro Tip: Bajaj Finserv offers tools like online account management and easy contribution tracking to enhance your NPS investment experience.

NPS does not offer fixed interest rates as it is a market-linked investment. Returns depend on the performance of the underlying assets, which include equity, corporate bonds, and government securities.

Historical Returns:

• Over the past decade, NPS has delivered average annual returns of 8%–10%, making it a competitive option for long-term wealth creation.
• Equity investments within NPS have provided higher returns, while debt investments offer stability.

Returns in 2025:

As of 2025, NPS continues to offer strong returns, with equity funds delivering robust performance due to market growth. Debt funds have also remained stable, ensuring a balanced portfolio for investors.

Why consistent returns matter:

The long-term nature of NPS allows you to benefit from the power of compounding. Even small contributions can grow significantly over time, making it an ideal choice for retirement planning.

Both NPS and Bajaj Finserv Fixed Deposits are excellent investment options, but they cater to different financial goals. Here is a detailed comparison to help you decide:

Which option is right for you?

• Choose NPS if you are focused on long-term retirement planning and are comfortable with market-linked returns.
• Choose Bajaj Finserv Fixed Deposits if you prefer guaranteed returns, lower risk, and flexible tenure options.

Pro Tip: Diversify your portfolio by investing in both NPS and Bajaj Finserv Fixed Deposits to balance risk and returns.

Conclusion

NPS is a versatile and tax-efficient retirement planning tool that offers market-linked returns, professional fund management, and long-term financial security. With Bajaj Finserv’s user-friendly services, you can easily open and manage your NPS account, ensuring a hassle-free investment experience.

If you are looking to diversify your portfolio, consider combining NPS with Bajaj Finserv Fixed Deposits to achieve a balance between risk and guaranteed returns.

Take the first step towards a secure retirement today. Open your NPS account with Bajaj Finserv and start building your financial future.