The National Pension Scheme or NPS which was launched on 1 May 2009 was a major move by the government to convert the pension system from a defined benefit scheme to a more flexible defined contribution scheme with a range of investment options for the investors.  But even after more than five years since it started, despite the government’s backing and low charges, it is yet to take off as a popular tool to save for retirement. This could be attributed to firstly the difficulties faced in opening the account – in post offices and the specified banks, where many times the employees themselves are not aware of the product and secondly the product limitations.

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