NPS Could Earn 4% More — Your Retirement Wins Big

PFRDA has formed a panel to add new asset classes to NPS, which currently limits you to equity, bonds, and government securities. Better diversification could meaningfully raise your retirement corpus over a 20–30 year horizon.

Here's what happened: PFRDA has set up a committee to explore adding new asset classes — beyond equity, corporate bonds, and G-Secs — to the NPS investment universe.. Current NPS equity allocation is capped at 75% for active choice subscribers; new asset classes could open doors to alternatives like REITs, InvITs, or international funds.. NPS equity funds have delivered roughly 12–14% annualised returns; broader asset class exposure could push long-term portfolio returns meaningfully higher..

What you should do: Check your NPS active vs. auto choice setting on the CRA portal — active choice lets you control equity allocation up to 75% right now.. Claim your ₹50,000 extra NPS deduction under Section 80CCD(1B) this tax year — it's over and above the ₹1.5L 80C limit.. If you're under 40, increase your NPS equity allocation to the maximum 75% today — you have time to ride out market cycles and benefit most from any new asset classes..

Section 80CCD(1B) gives you ₹50,000 in additional tax deduction that most salaried Indians skip — at 30% slab, that's ₹15,000 back in your pocket every year.