New Delhi, Jan. 7 -- Recent changes to the National Pension System (NPS) have strengthened the case for using it as a long-term retirement vehicle, particularly for salaried employees with access to corporate NPS.

NPS is a market-linked retirement scheme that allows individuals to build a corpus through regular contributions during their working years. The accumulated amount can then be used to generate post-retirement income.

The most significant changes came in December 2025 and primarily apply to non-government subscribers. These include a higher permissible lump-sum withdrawal at retirement-80% of the corpus from 60% earlier; the tax-free portion remains capped at 60%; the mandatory annuity component has been reduced to 20% from 40%...