401(k) in India: What It Is and How It Relates to Your Career and Savings

When people talk about 401(k), a U.S.-based employer-sponsored retirement savings plan where employees contribute pre-tax income and often get matching contributions from their employer. Also known as defined contribution plan, it’s a cornerstone of American retirement strategy. But here’s the thing — 401(k) doesn’t exist in India. Not legally. Not officially. Not as part of any government or corporate structure. If you’re an Indian student or professional wondering why your friends abroad talk about 401(k)s like a magic money machine, you’re not alone. The truth is, India has its own system — and it’s not better or worse, just different.

India’s retirement landscape is built on three pillars: the Employees’ Provident Fund (EPF), a mandatory savings scheme for salaried workers where both employee and employer contribute 12% of basic salary, National Pension System (NPS), a voluntary, market-linked retirement account managed by the government and regulated by PFRDA, and personal savings like mutual funds, fixed deposits, or gold. Unlike a 401(k), where your employer might match your contribution dollar-for-dollar, EPF contributions are fixed and predictable. NPS gives you control over how your money is invested — in equity, debt, or government securities — but you’re on your own for the contributions. There’s no automatic employer top-up unless your company offers it as a voluntary perk, which is rare outside of multinationals.

So why do 401(k)s keep popping up in Indian discussions? Because many Indians work for U.S.-based companies, study abroad, or plan to retire overseas. Some expats in India still contribute to their U.S. 401(k) accounts. Others try to replicate the 401(k) model locally — saving 15-20% of income, investing in index funds, and using tax-saving instruments like ELSS to mimic the tax advantages. The real lesson? You don’t need a 401(k) to build wealth for retirement. You need a plan. And India gives you the tools — you just have to use them.

Below, you’ll find posts that explore how Indians plan for their financial future — from understanding EPF and NPS, to comparing global retirement systems, to figuring out what actually works for someone earning in rupees, not dollars. Whether you’re a student thinking ahead or a professional wondering if you’re saving enough, these articles cut through the noise and show you what matters.