Pension regulator to embed risk-profiling questions in all NPS platforms
The PFRDA plans to add suitability and risk-appetite queries to every NPS interface, guiding investors toward appropriate schemes.
At the launch of the NPS Preference Index Study 2026, PFRDA chairman S Ramann said the regulator will integrate risk-appetite and suitability questions into every NPS access point, including pension-fund portals, CRA systems and the NPS Trust platform. While the final scheme choice remains with the subscriber, the regulator wants to better gauge individual risk profiles, noting lifecycle products as a way to match investments to age.
NPS presently provides four lifecycle options that shift asset allocation over time. Ramann pointed out that pension coverage remains low at roughly 17-18% and that raising the EPF ceiling would not necessarily diminish NPS participation, as employers already allow salary-deduction contributions. He also urged long-term investors to diversify, adding that equity exposure can benefit those with at least a 15-year horizon, and noted recent expansions to include REITs, InvITs and AIFs.
