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NPS (National Pension System)
The National Pension System lets individuals build a retirement corpus by contributing regularly to funds that invest in equities, corporate bonds and government securities. At retirement, part can be withdrawn and part must buy an annuity for regular income.
Why It Matters
NPS offers low costs and extra tax benefits for retirement saving.
In India
Most central government employees who joined after 2004 are covered by the NPS rather than the old guaranteed pension.
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