The National Pension System (NPS) is India’s voluntary, market-linked retirement scheme. You invest in a mix of equity, debt, and government securities. At 60, you must use at least 40% of the corpus to buy an annuity; the rest can be withdrawn lump sum.

Tax Benefits

• 80CCD(1B) — Additional ₹50,000 deduction over 80C
• 80CCD(2) — Employer contribution up to 10% of salary (for salaried)
• EET — Exempt on contribution, exempt on accumulation, taxed on withdrawal (annuity income taxable)

For FIRE

• Pros — Low fees, tax benefit, forced discipline
• Cons — Lock-in until 60, annuity mandatory, limited withdrawal flexibility
• Use case — Good for the post-60 portion of your corpus; supplement with PPF and mutual funds for early retirement

See NPS vs PPF for FI for a detailed comparison.