NPS subscribers can soon get inflation-linked pension options: Here's how
Big update for future retirees: the Pension Fund Regulatory and Development Authority (PFRDA) is planning an inflation-indexed pension option under the National Pension System (NPS).
The goal? To make sure your retirement savings keep up with rising prices—something fixed pensions haven't really tackled.
PFRDA Chairman Sivasubramanian Ramann shared that discussions and piloting of these new options are expected to take around six months, aiming to give more peace of mind during retirement.
Financial firms will test these inflation-linked products
Financial firms will soon test these inflation-linked products, especially for the 40% of NPS savings that currently must go into annuities.
This could mean more choices and flexibility while keeping tax perks intact.
Plus, as of October 1, NPS subscribers can now invest their entire retirement pot in equities if they want higher growth potential—a first for the system.