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NPS vs NPS Sanchay: Two retirement options, but how are they different?
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4 min read | Updated on May 22, 2026, 10:43 IST
SUMMARY
While the names may sound similar, many investors are still trying to understand whether NPS Sanchay is a new pension product, a separate scheme or simply a simplified version of the existing NPS framework.
NPS Sanchay aims to bring more individuals into long-term retirement savings and improve pension penetration beyond salaried employees. | Image: Shutterstock.
In this article, we will take a closer look at NPS Sanchay and the regular National Pension System and who it is meant for.
What is NPS Sanchay?
NPS Sanchay is a simplified pension initiative introduced by the Pension Fund Regulatory and Development Authority (PFRDA) under the All Citizen Model.
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Gig workers
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Self-employed individuals
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Small traders
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Daily wage earners
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Workers in the unorganised sector.
However, any Indian citizen aged between 18 and 85 years can open an NPS Sanchay account subject to KYC requirements.
How Is NPS Sanchay different from regular NPS?
| Feature | NPS (All Citizen Model) | NPS Sanchay |
|---|---|---|
| Scheme type | National Pension System under All Citizen Model | “NPS Sanchay” introduced as a simplified variant under All Citizen Model and MSF Framework |
| Objective | General pension system for subscribers under NPS framework | Simplified variant to reduce complexities in investment choice and asset allocation, addressing limited advisory support |
| Eligibility | All citizen model subscribers as per NPS framework | Any citizen of India aged 18–85 years via PoP, PoP-SP or online platform |
| Investment structure | As per NPS investment guidelines applicable to All Citizen Model | Investment pattern aligned with Government Sector schemes including UPS, NPS, APY (Central and State Government default), Corporate CG, NPS Lite, Atal Pension Yojana and APY Fund Scheme |
| Investment choice | Subscriber may change Pension Fund and Asset Allocation as per regulations and guidelines | Subscriber provided option to change Pension Fund and Asset Allocation as per regulations and circulars |
| Pension fund availability | Pension Funds registered under NPS framework | Implemented and available across all Pension Funds registered with the Authority |
| Charge structure | As per PoP Regulations, 2018 and applicable NPS charge framework | Same PoP charge structure as NPS (All Citizen), NPS Vatsalya and NPS Lite unless otherwise specified |
| Exit and withdrawal | Governed by PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 and amendments | Same regulations apply mutatis mutandis |
| KYC requirement | As per NPS subscriber registration framework | Mandatory compliance with KYC under Subscriber Registration Form (SRF) |
| Advisory support | Subscriber expected to make choices with limited advisory support | Designed to reduce reliance on advisory support at last-mile level |
| Complexity level | Higher, due to multiple fund and asset allocation choices | Lower, simplified structure to ease participation |
| Alignment | Flexible, subscriber-driven | Default alignment with government sector investment guidelines |
Are tax benefits different?
No. NPS Sanchay offers the same tax benefits available under the National Pension System. Subscribers can continue to claim deductions under applicable provisions of the Income Tax Act.
With more workers entering the gig economy and informal sector occupations without traditional pension coverage, India's retirement picture is fast shifting. NPS Sanchay wants to increase pension penetration outside of paid workers and encourage more people to save for long-term retirement by making pension investing easier.
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