6 Retirement Plans for Indians Who Won't Live With Their Kids

3. National Pension System (NPS) and government-backed options: disciplined backbone for income

What it does: The National Pension System (NPS) is a structured public pension scheme where you accumulate a retirement corpus and then annuitise a portion at exit. For many, NPS serves as a long-term spine in a retirement plan because of its regulated framework and portability across jobs and locations. Why it helps independent retirees: NPS enforces discipline and often offers access to diversified asset classes at relatively low cost. At retirement, you can withdraw a portion as lump sum and must use a specified part to buy an annuity for regular income. This design aligns well with the need for guaranteed cash while preserving a growth portion that can keep pace with inflation. Practical notes: NPS has rules about how much must be annuitised; check current regulations before planning. For NRIs thinking of returning to India or keeping cross-border finances, verify portability and tax rules. Use NPS together with other income sources rather than relying on it alone for all living costs.