The National Pension System (NPS) is a voluntary retirement savings scheme in India, regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It allows subscribers, aged 18 to 70, to build a retirement corpus through disciplined contributions. A common misconception is that NPS funds are entirely invested in the stock market; however, they are diversified across various asset classes, including equities, corporate debt, and government securities. Subscribers can choose between two allocation methods: Active Choice, where they control their investment distribution, and Auto Choice, which automatically adjusts allocations based on the subscriber's age. Equity exposure can vary, with some options allowing up to 100% investment in stocks for eligible non-government subscribers. Recent changes have improved withdrawal flexibility, allowing subscribers with a corpus over ₹12 lakh (approximately $14,500 USD) to withdraw up to 80% as a lump sum at retirement. While NPS involves market-linked assets, it is structured to manage risk and provide a balanced approach to retirement savings.