An extra drop of tax benefit from already squeezed salaried lemons.

No not worth it, invest in mutual funds or stocks it will give you higher returns. Dude who made the info graphic have no idea what so ever on inflation, he is assuming 5% inflation rate is big joke here, inflation is average of 7 to 8% every year so 3% difference in 30 years will make you cry on the returns. Also after maturity NPS will not give you whole money, they will keep x% with them and remaining they will pay you on monthly basis until your saved money is gone. There is lot more to it but NPS is good only for Govt people with stable job not good for pvt sector people. It's has guaranteed returns but the amount you will receive after 30 years is like you can pay milk man bill.

So many weasel words in the above comment. Underlying instrument for NPS is equity + debt, same can be mutual funds (depends on type of MF). Inflation will remain same for both the instruments. Some advantages of NPS over MF. 1. Less cost of NPS (against active MF) 2. Taxation benefits at maturity 3. 80CCD benefits Disadvantage of NPS 1. Lock-in period (if it’s long term, you shouldn’t be worried) 2. 40% release in annuity (again long term investment)

Investing definitely is complex and that’s why very less people grow their wealth ;) Yes, tax savings with NPS is three-folds. 1. For corporate NPS, money goes out from pre-tax salary. 2. Tax exemptions during the financial year 3. Tax benefits at the time of maturity Not too difficult to understand but need some patience to scratch the surface.

1,2, doesn’t make sense, isn’t that same as how employee part of PF behaves? Employer PF portion doesn’t even count among the taxable income, and employee part gets counted in 80C. Similar way for that NPS. Anyway, most companies don’t give this option of employer’s NPS. And with the complex annuity/reinvestment scheme, and no clarity on pension amount, it is all hazy and ambiguous. So looks a waste scheme.

The sooner you plan, better it would be. Regret of not investing early will haunt you in 30s (especially if you don’t have generational wealth).

Even if you’re in your 20s, think of pocket money you used to get in school. The value of same amount now would be meagre.