Building Financial Security Across Generations with NPS
In Episode 9 of NPS Made Simple: Your Pension Partner for Life, we explore how NPS can serve as a multi-generational wealth solution. From retirees to mid-career professionals and young earners, each family member can benefit from a stable, disciplined, and tax-efficient savings strategy. Subhasis Ghosh, CEO of Kotak Mahindra Pension Fund, breaks down how NPS supports intergenerational financial well-being and long-term independence.
In this episode, we're looking at a full family: a retiree, a mid-career contributor, and a young earner. How does NPS help each of them build financial stability?
It's fantastic to see a family approach retirement planning together. For the retired member, NPS offers the comfort of a guaranteed annuity — a steady income stream for life or even for the spouse's lifetime, depending on the option chosen. That removes reinvestment risk and provides great mental security.
The mid-career contributor benefits from the flexibility of tier 2 accounts for contingency planning, while continuing to grow tier 1 retirement savings. And for the young investor, compounding is the superpower. Even small, regular contributions from an early age can grow into a significant corpus by retirement.
That sounds like a great long-term strategy. So, how can families begin building this shared mindset around retirement?
Start by talking about it early. Parents who model smart saving behavior and talk openly about money build stronger financial literacy in their children. I always say — save one-third of your income if you want a comfortable retirement. That mindset needs to be taught, just like history or math.
What's your take on financial literacy in India today — is it improving?
We're getting there, but the gap is still wide. More people have Demat accounts than NPS accounts, and gaming apps have far more users than either. It reflects our tendency toward instant gratification. Retirement feels far away — until it isn't. That's why financial literacy, especially around long-term planning like NPS, is critical.
Is NPS alone enough, or should people have other investments too?
One product is never enough. NPS should be part of a broader portfolio — PF, mutual funds, gold, etc. But what makes NPS special is the long-term discipline, the low fund management costs, the tax advantages, and the fact that you don't see the money, so you don't spend it. It's engineered to create consistency.
And for those nearing retirement who may not have saved enough, is there still time?
It's never too late to start, but yes, it gets tougher. The key is to adjust your lifestyle now so that you're not forced to do it later. Financial independence — especially in old age — isn't just about money. It's about self-respect.
Any final thoughts for families trying to build this together?
Talk to each other. Watch content like this together. If each member of the family takes ownership of their future, financial stability becomes a shared value, not just an individual goal.
Watch Episode 9 to discover how families across generations can use NPS to build security, independence, and smarter savings habits — together.
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