After working for years to fulfill family commitments, every individual aspires for a comfortable life when he or she no longer earns. For this, what they need is a good pension corpus.

The National Pension Scheme (NPS) launched by the government of India and regulated by the Pension Fund Regulatory and Development Authority (PFRDA) is one such scheme which is gaining popularity among investors because of several reasons.

Why a pension fund?
According to PFRDA, pension provides people with a monthly income when they are no longer earning. And the need for pension is highlighted by several reasons, which include when one is not as productive in the old age as in the youth, the rise of the nuclear family system in India and the migration of younger earning members, the rise in cost of living, increased life expectancy and an assured monthly income that ensures dignified life in the old age.

Advantages of NPS
According to a HDFC Securities presentation on NPS, it has six investor-friendly attributes to this government-initiated scheme. These are:

äA low cost investment: One of the most cost effective investment options that is available in the market

ä A good investment vehicle for retirement savings where you can start with as little as Rs 500 per month äFlexible: You have the option to choose your own investment option and also choose the fund manager from a list of approved ones ä Tax savings: There are tax advantages for investors in NPS ä Portable: You can operate your account from anywhere in the country ä Regulated: The scheme is under the direct supervision of the government and under the regulatory purview of Pension Fund Regulatory and Development Authority (PFRDA)

Who are eligible?
Any Indian citizen, including non-resident Indians, in the age group of 18 to 60 years, can subscribe to NPS. Also there is no bar for you to participate in NPS if you are already invested in any other pension system.

What documents do I need to open an NPS account?
ä Completely filled in subscriber registration form äProof of Identity äProof of address äProof of age

Where to open an NPS account?
You can open an NPS account with entities called Points of Presence (PoPs) — almost all banks have enrolled to act as PoPs. There are other financial institutions that are PoPs. They are required to assist you to open an NPS account, including giving you all the relevant information and also clear your doubts and answers your queries about NPS, if you have any.