Why your first salary should also finance your last: Subhazis Ghosh if you start NPS early | Mint

Financial experts insist in a country where pension planning often takes a rear seat to short -term goals. In the first suspension of “NPS Made Simple: Your Pension Partner for Life”, Subhazis Ghosh, CEO of Kotak Pension Fund, with coin to explain why even 24-year-olds just entered the workforce to plan for retirement-now where. Q: Raj, 24, just landed his first big job. He is excited, but is not a little premature at that age? Not at all. This is the best time to start. The power of composition works in your favor if you start early. Investing £ 1,000 a year can eventually lead to a significant retirement corpus. It’s not about how much you initially save – it’s about the beginning of the habit. Q: But what exactly is the National Pension System (NPS)? How does it work? It is a government-regulated voluntary retirement couple scheme. You contribute regularly, and the money is invested in a mix of equity, corporate effects and government security. It is market linked, professionally managed and low-cost-which makes it ideal for the creation of wealth in the long run. Question: Is it a government scheme or a private? It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), but is managed by private players like us. You must choose your pension fund manager and even switch once a year. This is your money, your call. Q: How do NPs compare to other investment options such as mutual funds or fixed deposits? The goal is different. NPS is specifically designed for retirement, with functions such as annuity options and partial withdrawal constraints to encourage long -term savings. It is also more cost-effective than most mutual funds and historically offers better returns than fixed deposits. Q: If you talk about yields, can NPs beat inflation? Yes. Despite market fluctuations, NPS has delivered about 10.5% CAGR over the past ten years. This is well above the average inflation rate. Of course, you need to invest long -term to take full advantage. Q: And what if someone wants flexibility in contributions? This is the beauty of NPs – you can invest as little as £ 1,000 a year. Contribute more if you can, less than things are now. But don’t skip completely. The discipline is important. Decrease: To start early – even with small quantities – can create a powerful retirement cushion. As Ghosh puts it, “Retirement planning is not age-bound. It is an intention bound.” Now look at episode 1 to learn why your 20s are the perfect time to secure your future.[Link to Episode] Note for the reader: This article is part of Mint’s Paid Consumer Connect initiative and is created independently by the brand. Mint does not accept editorial responsibility for the content, including the accuracy, completeness or any errors or omissions. Readers are advised to verify all information independently. First Published: April 26, 2025, 23:32 IST