The National Pension System, also known as New Pension Scheme, is a defined contribution retirement scheme, regulated by the PFRDA. It helps you build a retirement corpus in a systematic manner during your working life. On retirement, you can withdraw up to 60% of the corpus as a lump sum amount, while a minimum of 40% has to be invested in annuity schemes. Investment in annuity ensures you a monthly income in the form of pension. To summarise, NPS comes with the dual advantage of saving tax and assuring a regular income in the future.