Archives of articles related to the National Pension Scheme (NPS) aka the New Pension Scheme.
In a major reform, on 12th Dec 2025, the NPS regulator, PFRDA, has reduced the mandatory annuity requirement for non-government subscribers from 40% to 20%. This is most welcome news for existing subscribers. But what about those who wish to open an NPS account? Should this reform motivate them to do so? First, let us…
Continue reading →In response to our article, NPS Multiple Scheme Framework – What you need to know, wherein we have written, “we still do not have any clarity on how Tier 2 funds are taxed! Readers point me to various articles discussing tier 2 taxation, but there is no official statement from the finance ministry on this, as…
Continue reading →The Pension Fund Regulatory and Development Authority (PFRDA) has recently announced a Multiple Scheme Framework in the National Pension Scheme for all non-government subscribers. In this article, we explain the features of this framework. First things first, there is no change in the current schemes and their rules (as of now). The current schemes will…
Continue reading →I have invested in the National Pension Scheme (NPS) since 8 March 2010. This is a performance report showing how the NPS has fared over the last 15+ years. We also compare the returns with the EPF. Note 1 For government employees: We have extensively written about the Unified Pension Scheme vs the National Pension…
Continue reading →This article addresses common misconceptions about the National Pension Scheme (NPS) by government and private subscribers. Update: This article was conceived before the announcement of the Unified Pension Scheme (UPS). The misconceptions remain unchanged. Though I am eligible for the UPS, I am partial to the NPS and quite emotionally attached to my NPS corpus!…
Continue reading →NPS Vatsalya is a contributory pension scheme regulated and administered by the PFRDA for all minor Indian citizens. Just like PPF, the account will be opened in the name of the minor and operated by Guardian with the minor as the sole beneficiary. The minimum contribution each year is Rs. 1000 with no maximum limit….
Continue reading →Since the Unified Pension Scheme (UPS) announcement, several readers have asked me if I would opt for UPS. In this article, I explain why I prefer the NPS (National Pension Scheme) to the UPS, I have discussed a simple thumb rule to decide between the Unified Pension Scheme and the National Pension Scheme and also…
Continue reading →A reader asked, “What is the effective interest rate of the Unified Pension Scheme?” A discussion. As a pension scheme, it can be compared with life insurance policy annuity schemes that offer a pension in exchange for a lump sum. These schemes have an interest rate, also known as an annuity rate. See LIC Pension…
Continue reading →We recently published a calculator to compare the Unified Pension Scheme and the National Pension Scheme. We have updated this tool with an alternative comparison using withdrawal rates. This is based on the thumb rule to decide between the Unified Pension Scheme and the National Pension Scheme. Our first method compares only the products. It…
Continue reading →We discuss a simple, holistic guideline or thumb rule to decide between the Unified Pension Scheme and the National Pension Scheme. We have published a calculator to compare NPS and UPS. However, this involves too many unknowns and projections if retirement is far away. Also, the calculator only compares the two products, NPS and UPS….
Continue reading →Use this free calculator to find out if you can stay invested in the National Pension Scheme or must consider a switch to the Unified Pension Scheme (for Central government subscribers only at the time of writing). We have already covered the salient features of the Unified Pension Scheme and other considerations in our coverage:…
Continue reading →Several readers have asked us for a calculator to help them decide if they should switch from the National Pension Scheme (NPS) to the newly announced Unified Pension Scheme (UPS). Such a calculator is now available for free download, but several caveats must be considered. This is not an easy calculation, especially for those new…
Continue reading →With the introduction of the Unified Pension Scheme from 1st April 2025, many NPS government subscribers would ask, Should I switch from National Pension Scheme to the Unified Pension Scheme? Here is a free calculator to find out! At the time of writing, the full terms and conditions of the Unified Pension Scheme (UPS) are…
Continue reading →The government will offer the Unified Pension Scheme (UPS) as an alternative to the National Pension Scheme (NPS) from 1st April 2025 to all central government employees. State government employees are also eligible if the states join. Update: Use our free calculator linked below to compare NPS and UPS! The salient features are: Assured pension:…
Continue reading →Currently, section 80CCD(2) allows a deduction in the taxable income from National Pension Scheme Employer contributions – 10% from non-government subscribers and 14% from government subscribers. This deduction is allowed in both the old tax regime and the new tax regime. Also see: Budget 2024: New Tax Regime vs Old Tax Regime Calculator: Check which is…
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