Unified Pension Scheme: Know The Key Differences Before Switching Between UPS Vs NPS

Unified Pension Scheme (UPS)

The choice to opt for UPS is available only once during three months from April 1 for central govt employees. Once the scheme is selected, it can not be changed.

Switching From NPS

Switching from NPS can be done by filing relevant forms. The most important factors that one should consider are risk profile, current age, and the number of years left for retirement.

Why NPS?

If one is an aggressive investor, NPS is then a suitable option. If the career has just started and is open to work for the next 25 – 35 years, NPS will then accumulate a higher corpus.

Mid Age People

People in the age of 40s, who have been contributing to NPS can stay with it as the expected pension under UPS may be lower than in NPS.

What Is Better UPS Or NPS?

UPS offers one with the stability of pension and is a great feature for central government employees who had to come out of an older pension scheme (OPS) into NPS. However, NPS offers higher returns.

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