About NPS and its Benefits For Employees and Employers

Notably, NPS falls under the 'individual pension account' category, which means it is not tied with an enterprise account. If a business ceases to exist, the NPS account will continue to support a business owner’s financial goals and his/her future. Also, employers can adopt NPS as a retirement benefit scheme for their employees, boosting their employees’ loyalty and securing their financial future (read interesting stats below). Find all that’s good about NPS, NPS online registration and how this retirement savings scheme is well-positioned to provide a reliable retirement income to Indian citizens. 

NPS - An overview 

Simply put, NPS (short for National Pension System) is a voluntary and defined contribution retirement savings scheme in India. It allows subscribers 18-70 years of age to invest in their pension accounts at specific intervals during their working life. It creates the culture of “savings for retirement” amongst the citizens so that when they complete the working-age, they have a financially secured future. 

Previously, the scheme was limited to the central government employees, but now PFRDA (Pension Fund Regulatory Development Authority) allows every Indian citizen to contribute to the account voluntarily, which means salaried employees, self-employed professionals, freelancers across roles can join this scheme and benefit from a long-term investment. 

How employers can extend NPS to employees for positive results

If we look closely, there are several positive underlying impacts of this retirement fund. And it can work as a powerful source to inculcate the habit of savings. In this article, we will briefly discuss NPS extensions by employers to their employees. 

Interesting statistics 

Let’s take an example. According to a survey, “51 percent of Indians do not have a retirement plan ready”. When asked what could motivate them to save more for their retirement, 88 per cent of the respondents believe that guidance from their employers as a motivating factor. In this sense, if extended by an employer to its employees, NPS could help stabilize the latter’s financial future. Notably, employers can also claim for NPS contributions as part of their business expenses. 

Boost loyalty and build differentiation

For an employer, NPS contributions can also help build employee loyalty. The initiative can help build a value proposition for the employer in the market, making itself a preferred company to work with. The ease and flexibility of the NPS account make it easy to opt for. 

On a broader level, NPS allows a contributor to choose any amount of their preference, both husband and wife in a family can enrol in it. Simply put, NPS provides a sustainable retirement income solution. Should you want to learn about how to do 

NPS online registration for govt employees, or have any other query about NPS online registration in general, please feel free to follow this weblink.