NPS Vatsalya Scheme: Secure Your Child's Future with Long-Term Pension Savings

• PFRDA launched NPS Vatsalya, a pension scheme for minors (below 18) to build a long-term savings corpus.
• Parents/guardians can open and manage the account, with a minimum annual contribution of Rs 250.
• Investments are equity-tilted (50-75%) for long-term growth, also including government securities and debt instruments.
• Partial withdrawals are allowed after three years for specific needs like education or serious illness, limited to 25% of contributions and two withdrawals before age 18.
• Upon turning 18, the child can shift to regular NPS, withdraw partially/fully, or the account automatically shifts to a high-risk equity option if no choice is made by age 21.

Why It Matters: NPS Vatsalya helps parents build a significant pension corpus for their children's future with equity-focused investments.