UPS VS NPS: Confused, What To Choose? Calculate Your Benefits After Retirement Before Deciding!

The newly launched Unified Pension Scheme (UPS) is available since April 1, 2025, however, this new pension scheme is introduced as an option to the National Pension System (NPS) which is widely held by both the central government and other employees. Recently, in a major relief, the Finance Ministry extended the cut-off deadline for choosing the UPS option over NPS.

If you are still confused about which is the best retirement option between UPS or NPS, check out this calculation!

Calculation: An Example!

Date of Birth: 01/07/1990

Date Of Joining: 01/07/2010

Qualifying Services: 40 Years

Retirement Age: 65 Years

Monthly Basic Pay: Rs 35,000

Existing NPS Tier 1 Corpus: Rs 5 Lakh

Annual Basic Pay Growth: 5%

Annual Dearness Allowance Growth: 4%

Expectation of Return on Investment: 8%

Final Withdrawal Percentage: 60%

Annuity Rate: 6.5%

Life Expectancy: 78 Years

Surviving Spouse Life Expectancy: 78 Years

Here are the benefits on retirement: UPS VS NPS

(Image Source: NPS Trust)

Using the above example, what would be your present value of a monthly payout at superannuation?

Further, what will be your monthly payout after superannuation?