KEY HIGHLIGHTS
- PFRDA adds two new Auto Choice options under NPS and UPS.
- Govt employees now get **6 investment choices** instead of 4.
- More equity-heavy options may boost long-term pension wealth.
If you’re a Central Government employee, there’s a solid update for you.
PFRDA has quietly expanded your investment choices under NPS and UPS, and the new options give you way more control over how your money grows.
Earlier, subscribers had only four routes to choose from.
Now, that number jumps to six — including two fresh Auto Choice plans with higher equity exposure.
Summary Table: Old vs New Options
| Investment Option | Equity Allocation (Early Career) | Equity Allocation (At 55) | Ideal For |
|---|---|---|---|
| Default Scheme | As per predefined asset pattern | As per scheme | Hands-off investors |
| Active Choice (100% G-Sec) | 0% | 0% | Very low-risk investors |
| Auto Choice – LC25 (Low) | 25% till 35 yrs | 5% | Conservative savers |
| Auto Choice – LC50 (Moderate) | 50% till 35 yrs | 10% | Balanced approach |
| Auto Choice – LC75 (High) (New) | 75% till 35 yrs | 15% | High-risk, growth-focused |
| Auto Choice – Aggressive (New) | 50% till 45 yrs | 35% | Mid-career high-growth seekers |
What’s New in the Two Fresh Investment Options?
Auto Choice – Life Cycle 75 (High)
This one is for people who don’t mind a bit of market uthal-puthal.
Here’s the simple breakdown:
- 75% equity till age 35
- Gradually drops to 15% by 55
- Designed for those who want higher long-term returns, even if markets fluctuate
Think of it like a “growth engine” for your pension money.
Auto Choice – Life Cycle – Aggressive
If you’re in your 30s or 40s and still want strong growth, this option fits perfectly.
- 50% equity till age 45
- Reduces to 35% by age 55
- Keeps your portfolio more growth-oriented, even in mid-career
Basically, this option sits between moderate and high-risk categories — a kind of “sweet spot”.
Why This Matters For Govt Employees
Till now, many government subscribers felt stuck with limited choices.
The two new options finally bring flexibility, especially for those who prefer equity-heavy investments.
With more equity, there’s higher return potential — and yes, that also means higher risk.
But for long-term investments like pension, equity exposure often helps beat inflation and build a bigger corpus.
PFRDA has clearly hinted that these options are meant to give employees more freedom to shape their retirement plan based on their risk appetite.
A Small Reminder
PFRDA suggests you check:
- Your pension fund’s track record
- Scheme-wise returns (available on NPS Trust website)
- Your personal risk capacity
Don’t switch blindly. Thoda research zaroor karo — after all, it’s your retirement money.
Frequently Asked Questions
1. Are these new options available for private sector NPS users?
Right now, the move is focused on Central Government subscribers. Private sector options may expand later, but nothing official yet.
2. Can I shift from my current Auto Choice to the new ones?
Yes, subscribers can shift. However, changes should be made after checking fund performance and comparing risk levels.
3. Do higher equity options guarantee better pension returns?
No guarantee — equity gives potential for higher returns but also comes with market risks. Long-term performance is usually better, but not assured.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investments or taking any financial risks. brandtechh.in is not liable for any risks.