NPS offers monetary stability and security to seniors who lack a source of income.  Pension plans offer the chance to save money, invest it, and then receive a lump sum as a recurring income through an annuity plan when you retire.

Individual NPS savings are combined into pension funds, which the Pension Fund Regulatory and Development Authority invests in diversified portfolios that include stocks, corporate debentures, and government bonds in accordance with approved investment rules.

There are two different account kinds in NPS: TIER 1 and TIER 2. Retirement is for TIER 1.
Savings and emergency savings can both be utilized in TIER 2. The programme enables systematic saving and monetary restraint among people to save for future advantages.