Mr S. Ramann Chairperson PFRDA (Left) & Mr Sriram Iyer MD & CEO, HDFC Pension (Right)
- While preference for NPS as a saving instrument rises, knowing the right corpus sits way below recommended levels
Mumbai, September 28, 2026: HDFC Pension Fund Management Ltd., one of India’s leading pension fund managers, today, unveiled the second edition of its flagship research NPS Preference Index Study 2026. The research highlights key behavioural insights amongst Indians towards retirement planning and their preference towards the National Pension Scheme (NPS) as an instrument for retirement planning. The detailed report was unveiled by Mr. S. Ramann – Chairperson, Pension Fund Regulatory and Development Authority (PFRDA) and Mr. Sriram Iyer – MD & CEO, HDFC Pension Fund Management Ltd.
The 2026 study showed India’s NPS Preference Index rising to 57, up three points from the inaugural 2023 reading of 54. The gain was led by Consideration, which climbed six points to 59, ahead of Familiarity (58, up three points) and Appeal (56, up two points), indicating that Indian savers are moving from passive awareness of NPS to active evaluation of the product. The readings are made on a scale of 0 to 100 by the research team. The other interesting finding was on the ideal corpus required for retirement needs. Indians have estimated their ideal retirement corpus target to Rs 1.5 crore, up from Rs 1.34 crore in 2023. However, this amount remained below ten times average annual household income, pointing to a continued gap between what consumers believe they will need and what retirement actually costs.
Speaking at the unveiling of the second edition of NPS Preference Index Study 2026, Mr. Sriram Iyer – MD & CEO, HDFC Pension Fund Management Ltd., said “As India’s retirement story is building steadily, our industry, guided by our regulator, plays a critical role in empowering Indians with a compelling product proposition that will help them build a strong corpus for their retirement needs. I believe this report, with deep insights into consumer behaviour and sentiments towards NPS, will play a critical role in further sharpening how we enable Indians build their corpus for their retirement. Seeing a rise in preference index is an indication that we are moving in the right direction, however, there is more ground to cover to help consumers know more about the benefits of retirement planning with NPS.”
He added, “While we are seeing improvement in Consideration for NPS, it is essential to convert this into enrolment. We will pick the insights from the study and focus on areas including sustained education, and engagement with our customers.”
Key findings from NPS Preference Index 2026
- NPS Preference Index rose to 57 on a scale of 0 to 100, up three points from the inaugural 2023 reading of 54.
- Gain was led by Consideration, which climbed six points to 59, ahead of Familiarity (58, up three points) and Appeal (56, up two points) – indicating that Indian savers are moving from passive awareness of NPS to active evaluation of the product.
- Regionally, the North recorded the highest Index score at 60, driven by a sharp rise in Consideration, while the East posted the fastest improvement in Familiarity, taking its score to 58. South stood at 57 and the West at 54.
- Retirement planning held its place among consumers’ top financial priorities, behind medical expenses (45%), emergency corpus building (39%), and child’s education (35%).
- Indians have raised their ideal retirement corpus target to Rs 1.5 crore. However, it remains below the recommended corpus, pointing to a continued gap between what consumers believe they will need and what retirement actually costs.
- Rising healthcare costs (47%) and age-related health issues (44%) were cited as the leading retirement concerns.
- 69% of respondents claimed they expected some financial support from family or children after retirement.
Product Enhancements Now Driving Enrolment
Recent enhancements to NPS emerged as the leading trigger for enrolment at 39%, ahead of tax savings (38%) and better returns (36%). Awareness of individual enhancements remained at roughly one in three consumers, with 100% equity investment and flexible payouts among the most recognised changes. Tax free withdrawal after age 60 years (59%) and the product’s status as a safe, government regulated instrument (52%) remained its strongest appeal. Despite recent product changes, lock-in period (26%) and mandatory annuity purchase (25%) continued to be cited as leading barriers to adoption, while lack of knowledge, the top barrier in the 2023 edition, fell to fifth place. The shift suggests that knowledge gaps are easing, even as product-related concerns persist.
Consumer Insights on NPS Vatsalya
The 2026 edition also tracked awareness of NPS Vatsalya, the scheme for minors introduced since the previous wave, finding 28% awareness among parents, of whom 27% reported a full understanding of its features. Tax-saving benefits (44%) and the discipline of long-term saving (41%) were the leading reasons parents cited for enrolling their children.
HDFC Pension’s NPS Preference Index Study 2026
The Preference Index is a proprietary study launched by HDFC Pension Fund Management Ltd. in partnership with Ipsos, an independent market research firm. The 2026 edition is based on face-to-face interviews with 1,812 NPS-aware consumers across 13 cities in India, among SEC A households in a 30–55 age group.
The Study was first launched by the Company in 2023 to mark NPS Diwas. It tracks consumer preference for NPS across three pillars, namely Familiarity, Appeal and Consideration, and is designed to be tracked over time.
Established in 2011, HDFC Pension is a licensed Pension Fund appointed by Pension Fund Regulatory & Development Authority (PFRDA) to manage pension corpus of citizens enrolled under the National Pension System. HDFC Pension is a wholly owned subsidiary of HDFC Life, one of India’s leading Life Insurance Companies.
HDFC Pension is licensed both as a Pension Fund (PF) and as a Point of Presence (PoP) and is managed by seasoned professionals with vast experience in Insurance & Pension Administration, Risk Management, Banking, Capital Market and Asset Management. The company is committed to delivering superior risk-adjusted returns, strictly adhering to the prudent investment norms and guidelines defined by PFRDA.
As a PoP, the company aims to provide seamless service to Individuals (under the retail NPS scheme) and Corporate Employees (under the Corporate NPS scheme) by helping them subscribe to NPS and for their ongoing service needs through the life of their investment.
