Archive · 1 Oct 2026
Starting NPS at 25 or 40 Changes Retirement Strategy
Saving for retirement is like filling a large money box over many years.
Someone who starts at 25 has more time for their savings to grow through compounding.
Someone who starts at 40 has fewer years and may need to save more each month.
Younger investors may be able to keep more money in investments that can fluctuate in value.
As retirement gets closer, savings may gradually move toward more stable assets.
People should keep saving for retirement even while paying for homes or children’s education.
An emergency fund and suitable health and life insurance should also be considered.
The amount to save should be based on expected retirement expenses, and the plan should be reviewed as life changes.
Starting the National Pension System at 25 gives savings more time to compound and withstand market volatility.
Investors beginning at 40 may need larger contributions to target the same retirement corpus.
Asset allocation should consider investment horizon, risk tolerance, goals and overall finances—not age alone.
Retirement contributions should continue alongside EMIs, children’s education and other financial priorities.
Investors should estimate inflation-adjusted retirement expenses, then review contributions and asset allocation periodically.
- Who
- Indian investors and retirement savers, with guidance from Prithvinath Reddy of PPFAS Pension Fund Managers and Sumit Shukla of Axis Pension Fund.
- What
- Experts explained how starting the National Pension System at age 25 or 40 can affect contributions, asset allocation and retirement planning.
- When
- India observes NPS Diwas on 1 October; the article discusses NPS Diwas 2026.
- Where
- India.
- Why
- Starting earlier gives savings more time to compound, while later starters may need higher contributions to build the same retirement corpus.
- Earlier starting age
- A 25-year-old has a longer accumulation period and may need relatively smaller contributions.
- Later starting age
- A person starting at 40 may need to contribute more to target the same retirement corpus.
- Asset allocation
- Allocation should reflect investment horizon, risk tolerance, retirement goals and overall financial circumstances.
- Young investors
- Experts recommend starting with consistent contributions, even if the initial amount is small.
- Other priorities
- NPS contributions can continue at a reduced level alongside home loans, children’s education and other commitments.
- Retirement target
- Investors should estimate inflation-adjusted post-retirement expenses before setting their contribution.
- Other investments
- EPF and PPF can provide a relatively stable fixed-income base, while mutual funds may support other goals and offer flexibility.