The better option for regular income: NPS or equity savings funds?

If you're nearing retirement with an NPS (National Pension System) Tier 1 account, you now have more flexibility than ever to withdraw your savings. The recent introduction of systematic lump sum withdrawal (SLW) allows you to redeem up to 60 per cent of your corpus in tax-free phases rather than as a single lump sum. This opens two options you can consider: The first is to remain invested in the NPS and systematically withdraw money from there. The second is to move the retirement corpus to an equity savings fund and start a systematic withdrawal plan (SWP) . Equity savings funds are generally recommended for retirees due to their potential for balanced growth and regular income. But before we dive into a head-to-head comparison between NPS Tier 1 and equity savings funds, here is what you should know about them. NPS Tier 1 vs Equity savings funds: Key differences Feature NPS Tier 1 with SLW Equity savings fund with SWP Management fees Low expense ratio, a maximum of 0.09 per cent  Higher expense ratio Category average: 0.64 per cent Where they invest Equity a