- NPS is designed to provide old age security to citizens.
- Employees contribute a portion of their salary, matched by employers (for government).
- This builds an accumulated corpus over their working life.
- At retirement, a portion of this corpus must be used to purchase an annuity plan.
- This annuity provides a regular monthly pension.
- The remaining corpus can be withdrawn as a lump sum.
- This ensures a financial stream post-retirement.