INCOME TAX3 Sept 2026
NPS Active vs Auto Choice: Which investment option is right for your retirement goals? | Mint
The pension regulator now lets National Pension System (NPS) subscribers in Common Schemes pick Active Choice or Auto Choice. Active Choice lets you invest up to 75% in equities, while Auto Choice uses age-based formulas to shift money automatically. The option with more equity isn't automatically best, especially for young investors. Pick what suits your comfort, time horizon, and ability to bear market swings.
Key Statutory Highlights
- As of August 2026, NPS subscribers in Common Schemes can choose between Active Choice and Auto Choice.
- Active Choice allows up to 75% of your portfolio in equities, while Auto Choice depends entirely on age-based formulas.
- You can change your investment choice or asset allocation up to four times in a financial year, and change your pension fund once a year.
Actionable Advice for Taxpayers / Founders:Before deciding, think about how comfortable you are with market ups and downs and how NPS fits with your other retirement savings. Don't pick an option just because it offers higher equity exposure.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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