The National Pension System (NPS) provides a dependable retirement planning solution, ensuring a consistent income in old age while earning reasonable market returns. Each NPS subscriber is assigned a unique Permanent Retirement Account Number (PRAN). Opening an NPS account is convenient through the eNPS portal, regulated by the Pension Fund Regulatory and Development Authority.
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An Aadhaar card is required for account opening, and KYC verification is done using OTP authentication from the registered mobile number. NPS matures at 60 but can be extended to 70, with only 60% of the corpus withdrawable at maturity and the remainder invested in annuities.
Types of NPS accounts
Tier I has withdrawal limits, whereas Tier II has no withdrawal restrictions. Eligibility requirements include being 18 to 65 years old. To open an NPS account online, visit the NPS website, enter your Aadhaar or PAN information, choose an account type, authenticate with an OTP, provide personal information, select pension funds and investment mode, upload a photo and signature, pay, receive PRAN, and mail the form to the CRA office within 90 days. Offline, go to a Point of Presence (PoP), complete an NPS subscriber form, and submit it with photocopies of your KYC documents.
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Individuals aged 18 or older but under 65 at the time of application are eligible to open an NPS account.
How to open an NPS account
First, go to the NPS website and select Registration.
After you enter your Aadhaar or PAN information, an OTP will be sent to your registered mobile number.
Choose the type of account you wish to open.
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If you chose the Aadhaar option, enter the OTP for authentication.
If you chose PAN, you will be charged Rs.125 for verifying your bank information.
Choose from any of the eight pension funds; you must also select an investment mode and assign nominees.
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Then, upload the photo and signature, and make the payment.
You will now receive a Permanent Retirement Account Number (PRAN).
Finally, download and print the form.
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You must mail it to the CRA office within 90 days, with your signature and a photograph attached.
