n NISM Certifications
XVII NISM Series XVII
Medium

The pension received by an NPS subscriber in retirement is primarily funded through the purchase of an annuity with the accumulated corpus.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The Corporate employer

  2. B

    PFRDA

  3. C

    The government

  4. An annuity purchased on retirement

    Correct answer

Why this is the answer

The accumulated corpus in NPS is used to buy an annuity, which provides pension income during retirement, ensuring a steady income stream for the retiree.

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