The National Pension System (NPS) is perhaps the most economical and structured means of retirement saving. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), it entails long-term returns linked to markets with the tax benefit of being relieved. If you want to start saving, you can get your NPS account opened through the internet too. Here's a step-by-step guide that will help:
1. Go to the official NPS portal
The official portal could either be (https://enps.nsdl.com) or (https://enps.kfintech.com). These two portals have the government approval for opening and functioning NPS accounts. Either can be availed as per one's liking.
2. Choose 'National Pension System' and press on 'Registration'
Choose 'Individual Subscriber' and press' New Registration'. Aadhaar or PAN are required to register.
Aadhaar-based registration is quicker as it uses OTP verification.
Online KYC through your bank and uploading documents are required for PAN-based registration.
Advertisement
3. Enter personal details
Enter your name, date of birth, address, mobile number, email ID and other personal details. If you are registering through Aadhaar, some of this will be filled out automatically. Check for errors and correct them if needed.
4. Choose account type: Tier I or Tier II
Tier I is the compulsory retirement account with tax advantages and withdrawal restrictions. Tier II is a contributory savings account with unrestricted withdrawals but no tax advantages. You can start with Tier I only and then add Tier II if you wish.
5. Select Pension Fund Manager and investment option
Select one of the listed Pension Fund Managers. Alternatively, you can also select between: Active Choice (you decide the allocation to equity, corporate bonds, and government securities) and Auto Choice (allocation based on your age and automatically rebalanced over time)
Advertisement
6. Upload your documents
You will need to upload scanned copies of the following: photograph, signature or Aadhaar (whichever you used during registration). If you are choosing the PAN-based option, you may also need to upload a cancelled cheque for authentication.
7. Contribute for the first time
Pay the minimum contribution amount (Rs 500 for Tier I) via internet banking, UPI, or debit card. This will be invested based on the fund and option you selected.
8. Get your PRAN and login credentials
Once registration is complete and payment is successful, you'll get your Permanent Retirement Account Number (PRAN). This is your unique ID for all NPS-related activities. You'll also receive login credentials to access your account online.
Advertisement
Things to Remember
Keep your PRAN and login details safe.
Make sure your mobile number and email are active for OTP and alerts.
You may log in whenever you want to contribute more, change fund managers, or get statements downloaded.
It is an easy and quick way to start planning for retirement by opening an NPS account online. With less paperwork and an internet connection, you can begin building a safe financial future from home.
