RBI Study Reveals Old Pension Scheme to be 4.5 Times More Expensive Than NPS

The RBI’s comprehensive analysis indicates that switching from the NPS to the OPS would incur costs approximately 4.5 times higher. This substantial increase in expenditure is not just a one-off financial burden but is projected to escalate to 0.9 percent of the nation’s Gross Domestic Product (GDP) annually by 2060.

States’ Shift to Old Pension Scheme: A Fiscal Time Bomb, Says RBI

If all states adopt OPS, replacing the National Pension System (NPS), it could lead to a cumulative fiscal burden approximately 4.5 times greater than that of NPS. By 2060, this shift is projected to add an additional 0.9% to the GDP annually in pension-related expenditures.