Archives of articles related to the National Pension Scheme (NPS) aka the New Pension Scheme.
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…
Continue reading →A reader says, “There is an option of ” continuation of NPS” till 75 years of age where subscriber can continue contributing. I want to confirm if the annuity is not required to be purchased till 75 years if this continuation option is selected”. The NPS exit and withdrawal rules have been amended so often…
Continue reading →In this article, we address a popular misconception about the contribution of NPS employers. Before we begin, we would like to point out that your employer is most likely handling this contribution correctly. The misconception is only among the employees. The NPS employer’s contribution falls under 80CCD(2) and is separate from the 80C limit of…
Continue reading →After repeated requests from users of our mutual fund and stock tracker, the freefincal team is happy to present an NPS Portfolio Tracker on Google Sheets. Readers may remember that we recently added a Sovereign Gold Bonds Tracker on Google Sheets to the tracker. Features: Users can choose from 123 NPS funds offered by various pension…
Continue reading →A reader asks, “What are the current NPS Annuity Rates? How can I find the pension I will get for my corpus if I exit today?” The NPS is a market-linked retirement product. The contributions are defined, but the benefits are not because the final corpus depends on market conditions. The NPS subscriber must buy…
Continue reading →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 14+ 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….
Continue reading →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…
Continue reading →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…
Continue reading →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…
Continue reading →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…
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