NPS Individual (Above 18 – 85 Years)

NPS Individual (Above 18 – 85 Years)

 

Criteria

Details

Age

Above 18 to 85 years

Nationality

Indian citizens, including NRIs

Account Type

Federal Bank Savings Account

Documents Needed

Aadhaar, PAN, Photograph

 

Account types:

NPS scheme is structured into two tiers

  • Tier-I account :
    This is the permanent retirement account into which the regular contributions made by the subscriber and/or their employer and are credited and invested as per the scheme/fund manager chosen by you.
  • Tier-II account :
    This is a voluntary / optional withdrawable account which is allowed only if you have an active  Tier I account. The withdrawals are permitted from this account as and when you require. NRIs are not allowed to Open Tier-II accounts.

 

Tier – I Account

Tier – II Account

Individual Pension Account

Optional Account and requires an active Tier-I Account

Withdrawal as per Exit & Withdrawal rules and regulations

Unrestricted withdrawals
  • Minimum contribution to open is ₹250/
  • Subsequent minimum contribution: Rs. 10/- per contribution.
  • Min. Contribution to open is ₹250/-
  • Subsequent minimum contribution: Rs. 10/- per contribution.

Min. Contribution per year is ₹1000/-

There’s no restriction on min. Contribution per year

Switching from Tier-I to Tier-II is not allowed

Anytime switching to Tier-I allowed

 

Asset Classes:

You need to choose the asset classes as well Pension Fund Manager (PFM) along with the percentage allocation to be done in each scheme.

There are four asset classes from which the allocation is to be specified under a single PFM

  1. Asset Class E – Equity and related instruments
  2. Asset Class C – Corporate debt and related instruments
  3. Asset Class G – Government Bonds and related instruments
  4. Asset Class A - Alternative Investment Funds including instruments like CMBS, MBS, REITS, AIFs, Invlts etc

While choosing the asset class, subscribers must note that

  1. Percentage contribution value cannot exceed 5% for Alternative Investment Funds
  2. The total allocation across E, C, G and A asset classes must be equal to 100%.
  3. For Tier-II, you can allocate 100% to Equity.
  4. For Tier-I, you can allocate 75% to Equity.

Investment Choices

Active Choice

Under Active Choice, you can plan and choose on how your contribution is to be invested. You can choose the PFM, the scheme(s) as well as the percentage allocation in the asset classes.

Asset Class

Maximum allocation of investment in the asset class

E

Up to 75%

C

Up to 100%

G

Up to 100%

A

Up to 5% .
Note: Investment in Asset Class A is available only for NPS Tier 1 account.

 

Auto Choice

NPS offers an easy option for you to invest in a Life-cycle fund in which the proportion of funds invested across three asset classes that are determined by a pre-defined portfolio and would change as per your age.

As age increases, your exposure to Equity and Corporate Debt tends to decrease under Auto Choice. Depending upon your risk appetite, there are four different options available within ‘Auto Choice’ – Aggressive, Low, Moderate and High.

Life Cycle 75 – High (15E / 55Y)

  • Suitable for investors with a high risk appetite seeking potentially higher long-term returns.
  • Invests significantly in equity during younger years and gradually shifts to safer assets as age increases.
  • Ideal for young investors comfortable with market fluctuations.

 

Life Cycle 50 – Moderate (10E / 55Y)

  • Suitable for investors with a moderate risk appetite.
  • Maintains a balanced allocation between equity and debt instruments.
  • Offers a mix of growth potential and stability.

 

Life Cycle 25 – Low (5E / 55Y)

  • Suitable for conservative investors who prioritize capital protection.
  • Lower exposure to equity and higher allocation to debt securities.
  • Provides relatively stable returns with lower market risk.

 

Life Cycle – Aggressive (35E / 55Y)

  • Designed for investors seeking higher growth opportunities through greater equity exposure than the Moderate and Low options.
  • Suitable for those with a long investment horizon and the ability to withstand market volatility.
  • Equity allocation is gradually reduced as the subscriber ages.

 

Pension Fund Managers

A variety of fund managers are available and the investor can choose from among them:

  • Aditya Birla Sunlife Pension Management Ltd
  • Axis Pension Fund Management Ltd.
  • DSP Pension Fund Managers Pvt Ltd.
  • HDFC Pension Management Co. Ltd
  • ICICI Prudential Pension Fund Management Co. Ltd.
  • Kotak Mahindra Pension Fund Ltd.
  • LIC Pension Fund Ltd.
  • SBI Pension Funds Pvt. Ltd
  • Tata Pension Management Ltd.
  • UTI Retirement Solutions Ltd.

 

Annuity Service Providers :

Annuity Services are financial services which offer a monthly/quarterly/annual pension at a guaranteed rate for the period chosen for a given value.

  • Life Insurance Corporation of India
  • SBI Life Insurance Co. Ltd.
  • ICICI Prudential Life Insurance Co. Ltd.
  • HDFC Standard Life Insurance Co Ltd
  • Bajaj Allianz Life Insurance Co. Ltd.
  • Star Union Dai-ichi Life Insurance Co. Ltd.
  • Edelweiss Tokio Life Insurance Co. Ltd.
  • India First Life Insurance Co. Ltd.
  • Canara HSBC Oriental Bank of Commerce Life Insurance Co.Ltd.
  • Kotak Mahindra Life Insurance Co. Ltd.
  • Max Life Insurance Co. Ltd.
  • Tata AIA Life Insurance Co. Ltd.
  • PNB MeltLife India Insurance Co. Ltd.
  • Shriram Life Insurance Co. Ltd.
  • Aditya Birla Sun Life Insurance Co.Ltd.