Why NPS Can Be Your Only Retirement Plan

The benefits of the National Pension Scheme (NPS) significantly outweigh the effort needed to learn and understand about investing.

- RAJAS KELKAR

For years, you have put aside money for your retirement through employee provident funds, public provident funds, other government guarantee schemes or fixed deposits. These days, many of you now do it through systematic investment plans of mutual funds or unit-linked insurance plans offered by insurers. The increased use of these products has a lot to do with understanding what you get at the end of the term of your investment.

Pension schemes across many countries in Europe are based on government guarantees. They are said to be ticking time bombs as those economies age rapidly. In India, 32.7 crore people are enrolled in employee provident fund (EPF) accounts. That is about 25% of the population. However, a provident fund is a defined benefit scheme.