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Planning for retirement is essential part of financial planning and must be done carefully. One can save and invest in the National Pension System (NPS) to secure his/her/their retirement finances and achieve peace of mind. And for those who already have other means of preparing their retirement finances, NPS can be an additional option to enhance their retirement finance.

There are two types of accounts in the National Pension System (NPS) - Tier-I and Tier-II. The former is the primary pension account, and the latter is the secondary or additional pension account for pure investment purpose. When an individual joins NPS, it is the Tier-I Account that is activated. A subscriber may add his/her/their Tier-II Account anytime but after opening of Tier-I Account. Though the functioning of the two accounts varies and subscribers can select different investment options, fund managers, and nominees, the Permanent Retirement Account Number (PRAN) for the two accounts is same since they are associated with the same subscriber.

India's pension system has converged in the last two decades, from a traditional, defined benefit structure to a more sustainable and inclusive model known as the National Pension System (NPS).