Archives of articles related to the National Pension Scheme (NPS) aka the New Pension Scheme.
The NPS regulator has introduced additional flexibility for withdrawals from the retirement corpus through the Retirement Income Scheme. This is in addition to all existing withdrawal options – NPS Systematic Lump Sum Withdrawal (SLW) Facility Explained and the mandatory annuity purchase. In essence, the retirement income scheme (RIS) has variable asset allocation plus systematic withdrawals. The…
Continue reading →After the mandatory NPS annuity was reduced to 20% in Dec 2025, I discussed two additional changes I would like to see in the NPS. (1) The inclusion of the RBI Retail Direct Portal as an annuity provider and (2) A short-term debt fund option for retirees. See: My NPS Wishlist: two changes to make it…
Continue reading →When the NPS regulator PFRDA announced on 12th Dec 2025 that the mandatory annuity requirement for non-government subscribers had been reduced from 40% to 20%, I also assumed that the minimum 15-year lock-in period applied to all such subscribers. Since our article – NPS reduces annuity requirement to 20% – should you open an NPS account?…
Continue reading →We publish a monthly National Pension Scheme Fund Screener to shortlist consistently performing NPS schemes. We discuss how the NPS equity schemes have performed using the Jan 2026 screener edition. Please note: NPS funds are NOT passive schemes. They are actively managed. The top 200 stocks by market capitalisation on the NSE (Nifty 200 index)…
Continue reading →The reduction of the mandatory annuity requirement from 40% to 20% for non-government NPS subscribers is a welcome move. I wish for two major changes to the NPS that would make it more user-friendly for retirees. I do not dream of the annuity option going away. That will make the NPS just another MF. It…
Continue reading →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….
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