One of the increasingly popular—and income-tax friendly—options to help you save for your retirement is the National Pension System (NPS). Here, you get a choice to decide how much you wish to invest in equity and debt. And how you wish to allocate your assets-auto or active choice. Under active choice, you can invest in scheme E (equity), corporate bonds (scheme C), government securities (scheme G) or alternative assets (scheme A). Under Auto choice, the allocations come pre-decided, depending on your age. You can choose between Conservative, Moderate (default option) and Aggressive lifecycle funds. At retirement, NPS allows you to withdraw 60% of corpus; remaining 40% goes into an annuity option.