A government-backed retirement savings scheme. You invest regularly now, and receive income after 60.

Any Indian citizen between 18 and 70 can open an NPS account. Salaried, self-employed — all welcome.

Tier I is the locked retirement account; Tier II works like a flexible savings account. Tier I gets the tax benefits.

Contributions go into equity, corporate bonds, and government securities. You choose your mix, or go auto.

NPS offers extra tax deduction beyond the standard limit. The exact benefit depends on your tax regime.

Most of the money stays locked until 60. This is retirement money — don't park short-term goals here.

Part of the corpus is paid as a lump sum; part must buy a pension (annuity) for monthly income.

Opening an account and then never checking the fund mix. Review your allocation every year or two.