Archive · 7 Sep 2026
Pausing NPS Contributions Can Shrink Retirement Corpus Significantly
NPS is a retirement savings account where people invest money regularly.
You can stop adding money for a while if you face financial problems or other emergencies.
The money already in the account stays invested and can continue to earn returns.
However, those returns depend on the market and are not guaranteed.
In an example, investing ₹10,000 each month for 20 years could grow to about ₹99.9 lakh at an assumed 12% annual return.
Stopping for one year lowers the estimated amount to about ₹87.5 lakh.
Stopping for three or five years lowers it further.
NPS contributions can start at ₹1,000 a year, but the account has rules about how much can be withdrawn at retirement.
NPS subscribers can pause contributions for months or several years without withdrawing their accumulated money.
Existing NPS savings continue earning market-linked returns, though their value can rise or fall.
For a ₹10,000 monthly contribution over 20 years at an assumed 12% return, the projected corpus is ₹99,91,476.
A one-, three- or five-year pause could reduce the illustrative corpus by ₹12,38,226, ₹33,12,271 or ₹49,45,720 respectively.
NPS requires a minimum annual contribution of ₹1,000 and has no upper contribution limit, although tax benefits are capped.
- Who
- NPS subscribers, including individuals saving for retirement.
- What
- The article explains how pausing NPS contributions may reduce the projected retirement corpus.
- When
- The illustration covers contributions from age 40 until retirement at age 60, with pauses of one, three or five years.
- Where
- The money remains invested in the subscriber’s NPS account.
- Why
- People may pause contributions because of financial constraints, unemployment, emergency expenses or other unforeseen circumstances.
- Illustrative monthly contribution
- ₹10,000
- Illustrative investment period
- 20 years, from age 40 to 60
- Assumed annual return
- 12%; actual NPS returns can vary with market performance
- Projected corpus without a pause
- ₹99,91,476
- Projected corpus after a five-year pause
- ₹50,45,756
- Minimum annual NPS contribution
- ₹1,000
- Contribution ceiling
- There is no upper contribution limit, although tax benefits are capped