NPS Now Allows 75% Equity: Is Your Retirement Growing?

Government employees under certain categories can now put up to 75% of their NPS contribution into equities. This means more growth potential for retirement savings, but also more risk. Here's what it means and what you should do.

Here's what happened: Eligible employees under NPS can now choose the LC-75 High option, allowing up to 75% of their corpus to be invested in equity assets.. The Aggressive Life Cycle Fund automatically shifts equity exposure down as the subscriber ages, starting high and reducing gradually toward retirement.. Previously, many government-category NPS subscribers were limited to lower equity caps, restricting long-term wealth-building potential in their pension accounts..

What you should do: Log in to your NPS account via the CRA portal (Karvy or NSDL) and check your current fund allocation and life cycle option.. If you are under 40 and have a long investment horizon, compare the LC-75 Aggressive Fund against your current default option for projected corpus difference.. Consult your HR or a PFRDA-registered financial advisor to confirm if you fall under the eligible employee category before switching your investment choice..

Pro tip: In NPS, switching between Life Cycle Funds is allowed once per year at no cost — use it strategically as your risk appetite or salary changes.