Archive · 6 Aug 2026
NPS's biggest makeover yet: 100% equity option transforms retirement planning
The National Pension System (NPS) is a special savings plan that helps people in India build money for their retirement years.
A government regulator called PFRDA has made the biggest changes ever to this plan.
Earlier, people could only put up to 75% of their NPS money into stocks, but now they can choose to put up to 100% in, which could grow faster but also comes with more risk.
People can now keep several different savings strategies in one NPS account, each looked after by a different money manager.
This is called the Multiple Scheme Framework.
Money managers can charge no more than 0.30% of the account value for this new service.
The money has to stay invested for at least 15 years, so this is for long-term savers.
When people retire, they can now take out up to 80% of their savings at once.
There are also plans to let the rest of the money keep growing while giving a regular income until the person turns 85.
These changes help because people today often spend 20-25 years in retirement, and only about 12% of India's workers have any formal pension.
PFRDA introduced the Multiple Scheme Framework (MSF), described as NPS's biggest structural reform in recent years.
From October 1, 2025, non-government subscribers under the All Citizen and Corporate models can invest in NPS schemes with up to 100% equity, up from the earlier 75% cap.
MSF enables "One PAN, One PRAN, Multiple Schemes," letting subscribers hold multiple schemes managed by different pension fund managers in one NPS account.
Total charges under MSF are capped at 0.30% of assets under management, and schemes carry a minimum 15-year vesting period.
Non-government subscribers can now withdraw up to 80% of their corpus as a lump sum at retirement, and a proposed Retirement Income Scheme would keep the corpus invested until age 85.
- Who
- Pension Fund Regulatory and Development Authority (PFRDA), NPS subscribers, and Abhishek Goenka, Chief Investment Officer of PPFAS Pension
- What
- The biggest reform of the National Pension System, the Multiple Scheme Framework, which allows up to 100% equity allocation and multiple schemes under one NPS account
- When
- From October 1, 2025
- Where
- India
- Why
- To transform NPS from a standard pension product into a flexible retirement planning platform, as Indians face 20-25 years in retirement, inflation averaging around 7%, and formal pension coverage for only about 12% of the workforce
- Regulator
- Pension Fund Regulatory and Development Authority (PFRDA)
- Reform
- Multiple Scheme Framework (MSF)
- Maximum equity allocation
- 100% (up from earlier 75% cap)
- Effective from
- October 1, 2025
- Eligible subscribers
- Non-government subscribers under the All Citizen and Corporate models
- Charge cap under MSF
- 0.30% of assets under management
- Minimum vesting period
- 15 years
- Lump-sum withdrawal at retirement
- Up to 80% of corpus for non-government subscribers