OPS vs NPS: Which Pension Scheme Gives You More After Retirement?

Choosing between the Old Pension Scheme (OPS) and the National Pension System (NPS) is one of the most important financial decisions for government and PSU employees.

One offers guaranteed, inflation-linked income for life.
The other offers market-linked growth with flexibility and risk.

But instead of opinions, assumptions, or political debates, what most people really want to know is:

Under the same conditions, which scheme actually pays more over a lifetime?

That’s exactly what the OPS vs NPS Comparison Tool below is designed to answer.

If you’re looking for a modern, feature-rich, and trader-friendly platform, Dhan is easily one of the best choices available today. From zero account opening charges to advanced tools like native TradingView, options strategy builder, and free API access, Dhan is clearly built with the modern Indian trader in mind.

With Dhan you can also invest and trade in IPO’s, NFO’s, SIP, Bonds, ETF, SGB, and many other financial products with so much ease.

Whether you’re an intraday trader, an options strategist, or a long-term investor, Dhan offers the perfect blend of speed, simplicity, and smart technology — without burning a hole in your pocket.

Why wait? Open your Dhan account now and take control of your trading journey with confidence.

👉 Click here to get started with Dhan

Why Comparing OPS and NPS Is So Confusing

Most online comparisons fail because they:

• Compare today’s OPS pension with future NPS corpus

• Ignore DA growth in OPS

• Assume 100% NPS corpus goes into annuity (which is wrong)

• Mix lump sum and monthly income unfairly

As a result, users walk away with misleading conclusions.

This tool avoids that.

What This OPS vs NPS Tool Does (In Simple Words)

This calculator compares only pension income, not marketing claims.

It answers:

• How much monthly pension OPS pays

• How much monthly pension NPS can realistically pay

• How much total pension income you may receive over retirement

• Which one is higher under the same assumptions

No bias. No exaggeration.

Inputs Explained (What You Enter and Why It Matters)

1. Current Age & Retirement Age

These determine:

• How long you will contribute to NPS

• When pension starts under both schemes

Default retirement age is 60, which matches most government rules.

2. Life Expectancy

This decides:

• How many years pension is paid

• The total lifetime value under both schemes

This tool uses pension duration, not just monthly figures.

3. Basic Pay at Retirement

This is the foundation of OPS pension.

OPS pension is calculated on:

• Last drawn basic pay

• Plus applicable DA at retirement

Higher basic → higher guaranteed pension

4. DA at Retirement (%)

This determines:

• Pensionable salary under OPS

• Starting pension amount

The tool assumes DA continues to grow after retirement, which reflects real OPS behaviour.

5. OPS Service (Years)

OPS provides:

• Full pension after 20+ years

• Proportionately lower pension below that

The tool automatically handles this logic.

6. NPS Monthly Contribution

This is your starting investment amount.

It includes:

• Your contribution

• (Employer contribution can be mentally assumed but not exaggerated)

7. NPS Return (% p.a.)

This is the expected long-term return.

The default is 10%, which is optimistic but reasonable over long periods…

8. NPS Step-up (% p.a.)

This reflects:

• Salary growth

• Annual increase in contributions

A 10% step-up significantly boosts NPS outcomes over 30 years.

9. Annuity Rate (%)

This decides:

• How much monthly pension NPS can pay

The tool uses 6%, which aligns with realistic annuity products.

10. NPS Lump Sum at Exit (%)

This is critical.

Under NPS:

• Up to 60% can be withdrawn as lump sum

• Only the remaining portion goes into annuity

This tool correctly calculates pension only on the annuitised portion — not the full corpus.

Outputs Explained (What the Results Mean)

OPS Lifetime Pension Value

This shows:

• Total pension income received over retirement

• Includes DA-linked growth

• Fully guaranteed by the government

This is income security, not market performance.

NPS Lifetime Pension Value

This shows:

• Total pension income from annuity payments

• Based only on the annuitised portion

• Does not include lump sum withdrawal

This reflects real pension income, not investment value.

Monthly Pension (Start)

This shows:

• First year pension under OPS

• First year annuity under NPS

OPS is stable.
NPS depends on markets and annuity pricing.

Verdict Statement

The verdict clearly states:

• Which scheme provides higher lifetime pension under these assumptions

• Acknowledges market risk where applicable

No absolute claims. No guarantees promised.

Why This Comparison Is Fair

This tool is fair because:

• OPS and NPS are evaluated over the same retirement duration

• DA growth is applied to OPS realistically

• NPS annuity is calculated on eligible corpus only

• Lump sum is not mixed with pension income

• No taxes are assumed for either side

It compares income streams, not marketing brochures.

Key Takeaways (Important)

• OPS shines in certainty and inflation protection

• NPS shines when:

  • Returns are strong

  • Contributions grow steadily

  • Markets cooperate

• NPS advantage is not guaranteed

• OPS advantage is predictable but capped

There is no universal winner — only outcomes based on assumptions.

Final Thoughts

The OPS vs NPS debate often becomes emotional or political.
This tool brings it back to numbers, assumptions, and reality.

If you are deciding your retirement path, use this calculator to:

• Understand trade-offs

• Set realistic expectations

• Avoid exaggerated claims from either side

Guaranteed security or market-linked growth — now you can compare both clearly.

OPS vs NPS: Common Questions Answered

1. Is OPS better than NPS?

There is no universal answer.

• OPS is better if you value:

  • Guaranteed income

  • Inflation protection through DA

  • Zero market risk

• NPS can be better if:

  • You start early

  • Contributions grow steadily

  • Long-term returns remain strong

  • You are comfortable with market risk

This tool shows which one performs better under your assumptions.

2. Why does NPS show higher lifetime value in some cases?

NPS can show higher lifetime value when:

• Contributions increase every year (step-up)

• Investment returns are assumed to be high

• Retirement period is long

• A portion of the corpus is converted into annuity

However, this outcome is not guaranteed and depends heavily on market performance.

3. Does this tool include the NPS lump sum withdrawal?

No.

The lifetime value shown for NPS includes only pension income from annuity, not the lump sum withdrawn at retirement.

This is intentional, to ensure a fair comparison with OPS, which does not provide a comparable lump sum.

4. Why is DA growth included for OPS but not for NPS?

Because:

• OPS pension is officially DA-linked

• DA revisions are a core feature of OPS

NPS annuities, on the other hand:

• Do not increase automatically with inflation

• Remain mostly fixed unless you buy a special product (at lower initial rates)

5. Is OPS pension really guaranteed for life?

Yes.

OPS provides:

• Lifetime pension to the retiree

• Family pension to the spouse after death

• Government-backed payment

This guarantee is one of the strongest advantages of OPS.

6. Is NPS pension guaranteed?

No.

Under NPS:

• Pension depends on market returns

• Annuity rates are set by insurers at retirement

• Income can vary significantly

NPS offers potential upside, not certainty.

7. Why does the OPS pension look smaller at the start?

OPS pension is calculated as:

• A percentage of last drawn pay

• Not as a function of total career savings

It is designed to provide income security, not wealth accumulation.

8. What happens if I live longer than assumed?

• Under OPS, pension continues for life, with DA protection

• Under NPS, annuity also continues for life, but income remains largely fixed

Living longer generally favours OPS, especially during high inflation periods.

9. Are taxes considered in this comparison?

No.

Taxes are excluded because:

• Tax rules change frequently

• Including tax assumptions can bias results

• Pension taxation varies by individual situation

The tool focuses on gross pension income only.

10. Can I rely on this tool for final retirement decisions?

This tool is meant for:

• Understanding differences

• Comparing scenarios

• Setting realistic expectations

It is not a substitute for official pension statements or professional advice.

Use it as a decision-support tool, not a final authority.

11. What assumptions does the tool make?

The tool assumes:

• Retirement at the entered age

• Continuous service under OPS

• Regular NPS contributions

• Constant long-term returns (for estimation)

• Standard annuity rates

• DA-linked pension growth under OPS

All assumptions are clearly visible and adjustable.

12. Why does this tool feel different from other OPS vs NPS calculators?

Because it:

• Avoids exaggeration

• Does not mix lump sum with pension

• Uses realistic annuity logic

• Treats OPS and NPS fairly

• Focuses on income, not hype

If you’re serious about trading, don’t compromise on tools or speed.

🔥 Open Your Free Dhan Account Today & Start Trading Smarter →

If you’re a trader or want more control over execution, charts, and speed.
Dhan is not just another discount broker — it’s genuinely innovating, especially for the next-gen Indian trader.

If you’re tired of clunky trading platforms and want modern, high-speed trading with transparent fees — Dhan is one of the best stockbrokers in India today.

According to the latest NSE reports  there are about 200+ stock brokers in India, however what makes Dhan a leading and strong contender in the stock broking industry is the tools and resources they have in their trading platform.

Moreover there are no hidden charges and the brokerages are very minimal if we do the industry comparison. They are also backed by cash enriched investors so nothing to fear.

If I have to rate Dhan app after looking at there breakthrough pricing model for brokerages as well as other charges and experiencing there simple yet great user interface for trading platform I would give it 9.6 out of 10.

There’s never been a better time to take control of your financial future and with Dhan, you get the fastest, most reliable, and feature-packed stock broker app in India for 2025.

Whether you’re a beginner eager to start investing or an experienced trader seeking advanced tools and zero brokerage on delivery trades, Dhan has everything you need to succeed.

Don’t settle for less. Join over 2 million + satisfied users who trust Dhan to power their trading journey every day. With zero account opening fees, free access to multiple platforms, and dedicated customer support, the path to smarter trading has never been easier.

🚀 Ready to Elevate Your Trading Game?
Start your journey with Dhan — India’s fastest, most reliable, and user-friendly stock broker app trusted by over 1 million users.

No hidden fees. No complicated processes. Just smart, seamless trading.

Open My Free Dhan Account Now

It takes less than 5 minutes to sign up and start trading.

If, you have liked the content please do share it with your friends or on social media, as sharing do bring the good karma. If you have any questions or feedback you can leave them in comment box below.

🌟 4 Best Brokers for Trading in India – Dhan vs Upstox vs Zerodha vs Fyers

🏆 Best Demat & Trading Account in India – Dhan vs Upstox vs Zerodha vs Groww

Dhan vs Zerodha vs Upstox vs Groww: Best Broker for Options Trading in India

Best App for Options Trading in India | Dhan vs Zerodha, Upstox, Fyers

Commodity Trading in India: A Beginner’s Guide to Earning from Gold, Oil & More

Here is the list of things as a beginner you should know, if you are thinking for doing intraday trading.

A brief understanding of

How share market works?

How To Invest In Indian Stock Market – Explained With Examples For Beginners

The Ultimate Step-by-Step Monster Guide to Trading & Investing in India

Learn about the basics of candlestick chart patterns and how to use them for intraday trading and investing. You should also learn about the best moving averages to use for better trading result.

Checkout Mastering Intraday Trading: A Beginner’s Guide to Profitable Strategies in the Indian Stock Market

Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.

Important Disclaimer

• This tool provides estimates, not financial advice

• Pension rules and annuity rates can change

• Actual DA revisions and NPS returns may differ

• Results should be used for understanding, not final decisions