Combine retirement planning with tax saving via NPS, say experts

With premature withdrawal being difficult, opt for it if you won't need the money till retirement

The March 31 deadline for making tax-saving investments for 2022-23 is approaching. One instrument that investors may consider -- both for retirement planning and tax saving -- is the National Pension System (NPS).

NPS offers two accounts. The mandatory tier I account comes with a lock-in period but offers tax benefits. The voluntary tier II account offers complete liquidity but doesn’t come with tax benefits.

Tax benefits on individual contribution

Any individual (resident or non-resident) who has paid any amount in his NPS account is eligible to claim a deduction under Section 80CCD (1) of up to Rs 1.5 lakh.