Plan For the Next Generation with NPS Vatsalya Scheme

Financial planning isn’t only about building your own future - it can also mean laying a foundation for the next generation. The NPS Vatsalya Scheme enables just that by allowing parents or guardians to open a minor account in NPS for children under 18. 

This early start creates space for long-term growth, teaching financial discipline and planting the seed for a secure retirement journey that begins well in advance. 

What is the NPS Vatsalya Scheme?

The NPS Vatsalya Scheme allows a parent or guardian to open and manage a minor account in NPS. The child becomes the account holder once they turn 18, after which they take full ownership and can continue contributing independently.

This account functions under the Retail NPS model, offering the same benefits as a regular NPS account - customizable asset allocation, flexible contributions, and transparency - while giving a head start in long-term financial planning.

Why consider NPS for children?

Starting early means giving time for investments to grow and compound. Even small, regular contributions can accumulate into a meaningful corpus over several decades. The structure also instills early exposure to savings and long-term thinking.

When the child reaches retirement age, the accumulated amount can be used to purchase an annuity and receive a pension post-retirement, offering financial stability in the later stages of life.

Why does the retail NPS model work?

The Retail NPS model is designed for individual contributors who want direct control over their retirement planning. It offers:

• Flexibility in contribution amount and frequency
• Choice of fund managers and asset allocation
• Access to performance reports and statements

Parents can use this model to not only build a future fund but also teach financial responsibility along the way.

Support from ICICI Prudential Pension Funds Management Company Limited

Opening a minor account in NPS is easy with ICICI Prudential Pension Funds Management Company Limited, which provides a seamless digital process and reliable fund management. From onboarding to ongoing tracking, the platform simplifies the journey - whether you're investing for yourself or your child.
Location: Cnergy, Appasaheb Marathe Marg, Century Bazaar, Prabhadevi, Mumbai, Maharashtra 400025, India

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