NPS Vatsalya: Should You Open a Pension for Your Newborn?

NPS Vatsalya lets any parent open a pension account for a child under 18 from as little as ₹1,000 a year.

Budget 2025 extended the ₹50,000 Section 80CCD(1B) deduction to Vatsalya — but only under the old tax regime.

At 18 the account becomes a regular NPS; if the corpus tops ₹2.5 lakh, 80% must buy an annuity.

The real superpower is time: money invested at birth compounds for up to 60 years.

It's a retirement gift, not a college fund — full access is locked until age 60 unless you exit early.