The Pension Fund Regulatory and Development Authority (PFRDA) has expanded the investment choices available under the National Pension System (NPS) and the Unified Pension Scheme (UPS).
It has introduced two new auto-choice investment options, increasing the total number of options for Central Government (CG) subscribers from four to six.
The newly added options are:
Auto Choice – Life Cycle 75 – High (15E/55Y)
Auto Choice – Life Cycle – Aggressive (35E/55Y)
This decision will benefit government employees by giving them greater flexibility to choose an investment plan that matches their risk level and retirement goals.
Current Investment Options for Central Government Subscribers
At present, the following four investment options are available under NPS and UPS:
Default Scheme:
Investments are made according to a fixed asset allocation pattern managed by three pension funds.
Active Choice (100% G-Sec):
The entire contribution is invested only in Government Securities.
Auto Choice – Life Cycle 25 – Low (5E/55Y):
25% equity allocation until age 35
Equity reduces to 5% by age 55 and continues till exit
Auto Choice – Life Cycle 50 – Moderate (10E/55Y):
50% equity allocation until age 35
Equity reduces to 10% by age 55 and continues till exit
Details of the New Investment Options
Auto Choice – Life Cycle 75 (High)
75% of the contribution goes into equities until age 35.
Equity allocation gradually reduces to 15% by age 55.
Best suited for subscribers willing to take higher market risks for potentially higher long-term returns.
Auto Choice – Life Cycle – Aggressive
50% equity allocation until age 45.
Equity reduces to 35% by age 55.
This option offers a higher minimum equity exposure, making it ideal for subscribers who prefer a growth-focused portfolio even during mid-career.
Important Advisory
PFRDA recommends that subscribers carefully evaluate the performance of different schemes
and the track record of pension funds before making any changes to their investment choices.
Updated fund-wise and scheme-wise return data is available on the NPS Trust website.
