In this article, we list the different options available for withdrawing from NPS after retirement and discuss which is suitable for whom. Note: The NPS is a mutual fund. Therefore, like any mutual fund, only the NAV on the exit date will apply to existing units to calculate the corpus. So, in the case of…

Since its inception, the National Pension Scheme (NPS) has made many user-friendly changes. The most recent of these is the introduction of the NPS Systematic Lump Sum Withdrawal (SLW) Facility, which allows users to gradually withdraw the non-annuitized portion of the corpus. Another notable change is the facility to defer annuity purchases (for pension) until…

A reader asks, “For those who don’t have a compulsory NPS deduction at the workplace, what would be a good option? a. aggressive hybrid fund. b. nifty 50 ETF+ conservative hybrid fund+/- gold ETF or c. nifty 50 etf + gilt fund +/- gold ETF?” Regular readers may know that we have always recommended against…

In a circular dated 27 Oct 2023, the Pension Fund Regulatory and Development Authority (PFRDA) announced the introduction of a Systematic Lump Sum Withdrawal facility in NPS. Here are the details. What are the existing NPS withdrawal rules, and where does this proposal fit? Existing rules: After the age of 60, an NPS subscriber has…

Many corporations are introducing an option to switch from their existing Superannuation scheme to the national pension scheme (NPS). Here is what you need to consider before deciding to switch. Many wrongly think that the NPS comes with additional employer contribution tax deductions. This is incorrect. Up to Rs. 7.5 lakhs of employer contribution in…

In Oct 2022, the Pension Fund Regulatory and Development Authority (PFRDA), the NPS regulator, released a draft proposal on implementing Systematic Lump sum Withdrawal (SLW) in the national pension scheme and sought public feedback. We had earlier discussed the withdrawal rules, the proposed change and our feedback on the same: NPS Systematic Lump Sum Withdrawal…

In a circular dated 10th May 2023, NPS regulator PFRDA announced that retirees can now buy multiple annuities for “Retirement Income Optimization”. However, there are still considerable limitations and much more flexibility is required. The circular says (1) In the interest of optimising subscribers’ retirement income and providing them with a wider range of annuity…

I have invested in the National Pension Scheme (NPS) since 8th March 2010. This is a performance report of how the NPS invested has fared over the last 13+ years. We also compare the returns with EPF. Note: Kindly do not assume that I am recommending NPS instruments. My situation is quite different from most….

We review the performance consistency of Kotak Pension Fund Scheme E – NPS TIER I measured against Nifty 50 TRI and UTI Nifty 50 TRI. The scheme was launched in June 2009 and currently has an AUM of about Rs. 1,070 crores. In a previous article, we listed the investment policy of NPS equity schemes,…

We review the performance consistency of ICICI Pension Fund Scheme E – NPS TIER I measured against Nifty 50 TRI and UTI Nifty 50 TRI. The scheme was launched in July 2009 and currently has an AUM of about Rs. 5,594 crores. In a previous article, we listed the investment policy of NPS equity schemes,…

We review the performance consistency of UTI Pension Fund Scheme E – NPS TIER I measured against Nifty 50 TRI and UTI Nifty 50 TRI. The scheme was launched in May 2009 and currently has an AUM of about Rs. 1,423 crores, much lower than the corresponding AUM of HDFC and SBI equity schemes reviewed…

We review the performance consistency of HDFC Pension Fund Scheme E – NPS TIER I measured against Nifty 50 TRI and UTI Nifty 50 TRI. The scheme was launched in Aug 2013 and currently has an AUM of little over Rs. 15 thousand crores- the highest AUM in the E segment for non-govt. subscribers. In…

We review the performance consistency of SBI Pension Fund Scheme E – NPS TIER I measured against Nifty 50 TRI and UTI Nifty 50 TRI. The scheme was launched in June 2009 and currently has an AUM of little over Rs. nine thousand crores. Only the scheme from HDFC Pension has a higher AUM (in…

The pension fund regulatory and development authority (PFRDA) the NPS regulator has released a draft proposal on implementing Systematic Lump sum Withdrawal (SLW) in the national pension scheme. The draft is open for comments/feedback until the 19th of Oct. This is an explanation of the proposed rules. Existing rules: After the age of 60, an…

A common misconception among investors is that the National Pension Scheme (NPS) schemes are passively managed like an index fund. This is incorrect. In this article, we discuss the investment policy of NPS Equity (E) schemes as approved by the pension fund regulatory and development authority (PFRDA). The norms can be found on the public…