People's interest in the National Pension Scheme (NPS) is growing significantly. However, people's retirement savings goals are still low. So, is it worth saving ₹1.5 crore?
People trust the NPS scheme the most.
People save money to ensure they can live their lives as they did before retirement, ensuring they don't have to compromise under any circumstances. But is a sum of 1.5 crore rupees enough for this? A recent survey revealed this.
In fact, people in India are now showing more interest in the National Pension System (NPS) than ever before. However, there's considerable confusion about how much savings is sufficient for post-retirement. A recent survey by HDFC Pension Fund Management's 2026 NPS Preference Index team revealed that people consider a corpus of approximately ₹1.5 crore sufficient for retirement.
The target has increased.
Previously, in the same survey report, people had stated this target for 2023 to be approximately 13.4 million. This means that people's retirement fund targets have increased in three years. However, according to the report, this amount may still fall short of what is needed for adequate financial security after retirement. The average retirement target is less than 10 times their average annual household expenses or income.
Interest in NPS has increased
People's interest in NPS has increased. The NPS Preference Index, which was 54 in 2023, has increased to 57 in 2026. This measures people's knowledge, preferences, and willingness to consider NPS. The NPS Consideration Score increased by 6 points to 59. Meanwhile, knowledge about NPS increased to 58, and its appeal score to 56.
This is the main reason for investing in NPS.
The survey also revealed that recent changes in NPS are the biggest influence on people's investment. Approximately 39% of respondents cited this as the reason for investing in NPS. This was followed by tax savings at 38% and the expectation of better returns at 36%.
However, some factors are still holding people back from NPS. About 26% cited the lock-in period as a problem, while 25% cited the mandatory annuity purchase requirement as a barrier. Interestingly, lack of information about NPS is no longer as significant a problem as it once was.
