NPS: Balancing Retirement Goals and Short-Term Financial Needs

The National Pension System (NPS) has two types of accounts: Tier 1 and Tier 2.

Tier 1 is for your retirement, like a locked savings account, where you can withdraw under specific circumstances.

Tier 2 is more flexible, like a regular savings account or mutual fund, allowing you to withdraw anytime.

Tier 2 accounts don't have tax benefits, unlike Tier 1, but still offer low management fees.

You can use Tier 2 for easy access to your money while preparing for the long term.

You can move the money from Tier 2 to Tier 1 to get tax benefits for your retirement.