The study found that the average ideal retirement corpus targeted by respondents rose to ₹1.5 crore in 2026 from ₹1.34 crore in 2023. However, the report said this remained below ten times the average annual household income, pointing to a gap between consumers’ perceived retirement needs and the corpus required to meet them.
At the same time, preference for NPS has strengthened. The NPS Preference Index rose to 57 in 2026 from 54 in 2023, with the increase driven primarily by a rise in consumers actively considering the product. The Consideration score rose six points to 59, while Familiarity increased to 58 and Appeal to 56.
Retirement planning remained among consumers’ top financial priorities, although it ranked behind medical expenses, emergency corpus building and children’s education. Rising healthcare costs, cited by 47% of respondents, and age-related health issues, cited by 44%, were the leading retirement concerns.
The study also found that 69% of respondents expected some financial support from their family or children after retirement, highlighting the continued role of family support in retirement expectations.
Product changes emerge as a key enrolment trigger
Recent changes to NPS were cited as the leading trigger for enrolment by 39% of respondents, ahead of tax savings at 38% and better returns at 36%.
However, product-related concerns continue to weigh on adoption. Lock-in periods were cited as a barrier by 26% of respondents, while 25% pointed to the mandatory annuity purchase. Lack of knowledge, which was the top barrier in the 2023 study, dropped to fifth place in the latest edition.
Among the product features, tax-free withdrawal after age 60 was cited by 59% of respondents as a strong appeal, while 52% highlighted NPS as a safe, government-regulated instrument.
The study also found that awareness of NPS Vatsalya, the pension scheme for minors, stood at 28% among parents surveyed. Of those aware of the scheme, 27% said they had a full understanding of its features. Tax-saving benefits and disciplined long-term saving were the leading reasons cited for enrolling children.
The 2026 study was conducted by Ipsos through face-to-face interviews with 1,812 NPS-aware consumers across 13 Indian cities. The respondents were from SEC A households and were aged 30-55 years.
The NPS Preference Index tracks consumer sentiment towards NPS across three parameters — Familiarity, Appeal and Consideration — and was first launched in 2023.
First Published: Oct 2, 2026 2:08 PM IST