Changing pension landscape in India: NPS Vatsalya set to be a game-changer

Employers and employees must contribute a percentage of their basic salary plus DA towards the UPS fund - which differentiates it from OPS but makes it similar to NPS

The NPS Vatsalya scheme proposed by the Central Government in the Union Budget 2024 appears to be a true game changer, nudging the gen Alpha to turn into astute and savvy investors by getting early onto the prudent financial behaviour bandwagon.
 

Such reforms unleashed in the pension sector promise to put India on a fast dial vis-à-vis developed nations like the United States. It may be noted that even in the US, younger cohorts of the working population, chiefly those at the bottom ladder of contractual remuneration/benefits, have been contributing little toward retirement in worker-managed pension plans