The NPS Wrap-Up: Myths, Mindsets & Long-Term Gains
This episode with Subhasis Ghosh, CEO of Kotak Pension Fund, cuts through the noise around retirement myths, SIPs vs lump-sum, early retirement, and even how to explain the NPS to a 7-year-old.
The debate ends here. According to Ghosh, SIP (Systematic Investment Plan) wins hands down, especially when market timing is uncertain. Regular investing not only smooths out market volatility but also builds long-term financial discipline. "Time in the market is more important than timing the market," he emphasizes.
While most seasoned investors focus on Tier 1 for its retirement benefits, Ghosh points out that Tier 2 is often overlooked. 'It's flexible, easy to withdraw, and offers the same low fund management cost,' he explains. Investors can use Tier 2 for short-term savings and even transfer it to Tier 1 later for tax benefits. Think of it as your liquidity cushion with long-term advantages.
One of the biggest misconceptions about NPS, Ghosh says, is that your money is 'locked forever.' That's far from true. While Tier 1 is designed for retirement, it allows partial withdrawals for emergencies. And Tier 2 offers complete flexibility.
In one of the most thoughtful moments in the series, Ghosh shares a personal take on what retirement means. 'It's not about stopping work,' he says. 'It's about doing what you couldn't do earlier.' Whether it's joining an NGO, traveling, or mentoring, staying engaged is key—not just for financial security but also for emotional and mental well-being.
The final episode also dives into the FIRE movement. Can the average salaried employee in India realistically retire early? 'It's possible—but only if your lifestyle is sustainable and you start saving early,' Ghosh shares. Still, he cautions against seeing FIRE as an end in itself. "You have a talent—use it for society. How much can you swim in the sea or walk in the hills?"
Ghosh wraps up with a powerful call for financial literacy, beginning at home. He introduces NPS VatSLay, a scheme that allows parents to open accounts for children from birth till age 18. 'Start early. Make them see the power of savings. That's the best gift you can give your child.'
NPS, he says, isn't just a product. It's a mindset about taking charge of your future and making intentional choices. With India at the cusp of an economic transformation and the cost of living on the rise, planning today can give you the freedom to live fully tomorrow.
Watch Episode 10 and start planning your retirement journey with clarity, confidence, and a long-term perspective.
First Published: 29 Apr 2025, 06:04 PM IST
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