Let us look at a few NPS benefits and disadvantages Disadvantages of NPS [H2] Following are the NPS advantages and disadvantages - The National Pension Scheme has a few disadvantages, which are mentioned below – NPS has put limitations on withdrawal NPS also restricts the amount of Investment a policyholder can make. Advantages of investing in an NPS are – Financial Security Tax Deduction Benefits This Plan is Low on Risk Premiums are Affordable Guaranteed and Secure Returns