NPS Annuity plans explained: Pick the right pension plan that fits your retirement needs

An annuity is the regular pension you receive after exiting NPS. You use your retirement corpus to buy an immediate annuity that pays periodic income based on your needs. These annuities are offered by IRDAI-regulated Annuity Service Providers (ASPs) empanelled with PFRDA.

The simplest pension option is to receive a fixed monthly income throughout your lifetime. Payments begin immediately after purchase and continue until death. Once you pass away, the policy ends with no further payouts to anyone.

Get regular pension throughout your life while ensuring your family receives the full purchase price after your death. The annuity payments stop upon death after which the policy terminates.

Perfect for married couples, the pension continues as long as either spouse lives. After the primary subscriber dies, the spouse receives the full annuity amount for their remaining lifetime. Payments stop only after both pass away.

Combines spouse protection with capital return. The pension is paid to the subscriber, then spouse after first death. Once both spouses pass away, the entire purchase price returns to the nominee.

Unique multi-generational pension plan covering family. Annuity payments continue sequentially to each surviving family member (subscriber, spouse, mother, and father). After the last family member passes, the full purchase price refunds to the nominee or legal heir.