Archive · 29 Dec 2025
India's Pension Reset: NPS Gains Traction in 2025
In 2025, India made some big changes to the National Pension System (NPS) to make it more popular, especially in companies.
They reduced the amount of money people have to use to buy an annuity from 40% to 20%, and they also made it easier to invest in more things.
Plus, employees get tax benefits, which makes the NPS a better choice for saving for retirement.
An expert named Kuldeep Parashar thinks this will make more companies offer the NPS to their employees.
The National Pension System (NPS) has become a more attractive option in the corporate sector due to recent changes.
The mandatory annuitization rate has been reduced from 40% to 20%, making the pension scheme more flexible.
The investment universe for NPS has been expanded, providing more options for investors.
The lock-in period for NPS has been reduced, increasing its appeal.
NPS offers tax benefits for employees, even in the new tax regime, making it a favorable choice.
- Who
- Kuldeep Parashar, founder of PensionBox
- What
- Changes in the National Pension System (NPS) making it more attractive
- When
- 2025
- Where
- India, particularly in the corporate sector
- Why
- To make the NPS more appealing with reduced lock-in, lower mandatory annuitization, and tax benefits
- Pension Scheme
- National Pension System (NPS)
- Key Change
- Reduced mandatory annuitization from 40% to 20%
- Tax Benefits
- Available for employees in the new regime
- Lock-in Period
- Reduced
- Investment Universe
- Expanded
- Sector Impact
- Corporate sector
- Expert
- Kuldeep Parashar, founder of PensionBox
