The retirement planning conversation is gradually expanding beyond simply building a corpus for the years after employment. Recent developments in the NPS ecosystem have brought areas such as children’s long-term savings and healthcare into the broader discussion around financial security.
NPS Vatsalya, for instance, allows parents and guardians to open an NPS account for a minor and build retirement-oriented long-term savings from an early age.
The focus on different life stages is also reflected in discussions around NPS Swasthya and the wider use of pension savings as part of long-term financial planning.
Sumit Shukla, MD & CEO, Axis Pension Fund, said the pension conversation is moving from retirement planning towards “lifelong financial resilience”, with initiatives such as NPS Vatsalya and NPS Swasthya seeking to address financial needs across different stages of life.
He also pointed to digital initiatives such as Tatkal NPS, which enables individuals to open an NPS account through the BHIM app.
At the same time, consumer awareness of retirement planning appears to be improving, although the amount Indians expect to need after retirement remains an important question.
According to HDFC Pension’s NPS Preference Index Study 2026, the NPS Preference Index rose to 57 from 54 in 2023, on a scale of 0 to 100. Consideration of NPS increased to 59, while familiarity stood at 58 and appeal at 56.The study found that respondents estimated their ideal retirement corpus at ₹1.5 crore, up from ₹1.34 crore in 2023. However, the study said this remained below the recommended corpus based on household income, highlighting a gap between perceived retirement requirements and the amount that may actually be needed.
Healthcare costs are another consideration. Rising healthcare costs were cited as a retirement concern by 47% of respondents, while 44% pointed to age-related health issues. The study also found that 69% expected some financial support from family members or children after retirement.
Recent changes to NPS were identified as the leading trigger for enrolment by 39% of respondents, followed by tax savings at 38% and returns at 36%. However, lock-in requirements and mandatory annuity purchase continued to be among the barriers cited by respondents.
The HDFC Pension study was based on face-to-face interviews with 1,812 NPS-aware consumers across 13 cities, covering SEC A households in the 30-55 age group. Its findings therefore reflect the surveyed population rather than all Indian households.
For savers, the broader shift means retirement planning involves estimating future living expenses, healthcare costs, inflation and longevity rather than relying on a single target corpus. The expansion of the NPS ecosystem is also bringing retirement savings into conversations around children’s financial planning, healthcare and long-term family finances.