How is NPS different for government and private sector employees? Abhishek Mehrotra explains

HDFC Securities’ Abhishek Mehrotra highlights that anyone between the ages of 18 and 60 can invest in the National Pension System (NPS) and take up to 60% of withdrawals upfront, with the remaining amounting to an annuity. Government employees are eligible to contribute up to 14% of their basic salary, while those in the private sector can invest up to 10%. Mehrotra notes that a tier-2 NPS account is not compulsory, but those using the tier-1 account are required to invest for the duration of the scheme.