The National Pension System (NPS) is a government-regulated pension scheme designed to provide financial security during retirement. It's a voluntary long-term investment program that offers a systematic way to build a retirement corpus while enjoying tax benefits.

1. Dual-Tiered Structure: NPS operates through two distinct tiers. Tier I is the mandatory account designed for long-term retirement savings, with limited withdrawal options before retirement. Tier II, on the other hand, offers more flexibility and can be opened alongside Tier I.

2. Tax Benefits: NPS provides tax benefits to encourage retirement savings. Contributions made by both employees and employers are eligible for tax deductions under Section 80CCD(1) of the Income Tax Act. Additionally, an exclusive tax benefit of up to Rs. 50,000 is available under Section 80CCD(1B) for contributions made by individuals.

3. Choice of Investment: NPS allows investors to choose between various asset classes, including equity, corporate bonds, and government securities. This flexibility lets investors tailor their portfolios based on their risk tolerance and financial goals.

4. Professional Fund Management: Funds in the NPS are managed by professional fund managers appointed by the Pension Fund Regulatory and Development Authority (PFRDA). Their expertise ensures that the investments are aligned with the goals of the scheme and offer potential for growth.

5. Portable and Universal: NPS accounts are portable, meaning they can be transferred from one location to another without losing benefits. The scheme is open to all citizens, including non-resident Indians (NRIs), ensuring universal coverage.

6. Annuity Options: At the time of retirement, a significant portion of the NPS corpus must be used to purchase an annuity that provides regular pension payments. NPS offers various annuity options to suit different retirement needs.

7. Regulatory Oversight: The NPS is regulated by the PFRDA, ensuring transparency, compliance with rules, and safeguarding the interests of investors.

8. Withdrawal and Maturity Benefits: NPS offers flexibility in withdrawal and maturity benefits. While a portion of the corpus must be used to purchase an annuity, the remaining amount can be withdrawn or deferred as per the subscriber's choice.

The National Pension System aims to empower individuals to plan for their financial well-being during retirement, offering them the opportunity to build a substantial retirement corpus while enjoying tax benefits and flexible investment options.