NPS is ready for a makeover. Are you?

INDIA'S PENSION INDUSTRY is entering a defining moment, and there is a bold ambition to expand the National Pension System (NPS) ten-foldin five years. The goal may sound audacious, but the building blocks are already in place.

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Fortoolong, pensions in India have struggled tocompetewith other savings products. Tax efficiency alone cannot make a retirement product attractive. Savers want choice, flexibility, and trust. The reforms now underway seek to deliver exactly that, reshaping the pension ecosystem for both institutions and individuals.

enhances subscriber outcomes.CRA charges have also been adjusted, ensuring operational sustainability across the ecosystem.

Flexibility at exit

The biggest psychological barrier for savers has been the rigidity of exit rules. Here too, reforms are under way. PFRDA is expanding the definition of “exit” to cover new life scenarios, extending continuation up to 85 years, and raising withdrawal thresholds.