______ (NPS) is a voluntary, defined contribution retirement savings scheme to enable the subscribers to make optimum decisions regarding their future through systematic savings.

Question

Question

This question was previously asked in

SSC GD Constable (2022) Official Paper (Held On : 11 Jan 2023 Shift 4)

Answer 1

The correct answer is Option 2.

Key Points

National Pension System: This is a voluntary, defined contribution retirement savings scheme in India that is designed to enable subscribers to make optimal decisions about their future through systematic savings.
It was introduced by the Indian government in 2004 for government employees and opened to all citizens in 2009.
This system allows Indian citizens, including non-residents, between the ages of 18 and 65, to make contributions towards their retirement, with some tax benefits.
It has two types of accounts: Tier I (non-withdrawable until retirement) and Tier II (voluntary savings account with flexibility to withdraw funds).

Additional Information

At retirement, the subscriber must use at least 40% of the accumulated corpus to buy an annuity providing a monthly pension.
The remaining funds can be withdrawn as a lump sum.
If the total corpus is less than INR 2 lakhs at retirement, the subscriber can opt for a complete lump sum withdrawal.