UPS to NPS: Opt for NPS if service tenure is long and volatility manageable
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar said NPS can work for employees with 20 to 30 years of service ahead, noted that the government's extra contribution moves into the NPS corpus on exit, and pointed out that the switch swaps fixed payouts for market-linked ones.
More of Abhishek's views on retirement
The article examines the one-time, irreversible option for central government employees to move from the Unified Pension Scheme to NPS. It weighs NPS's equity exposure and flexibility against the fixed pension, inflation-linked increases and family benefits given up, and outlines who may gain from switching and who should stay.
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UPS to NPS: Opt for NPS if service tenure is long and volatility manageable