NPS Active Choice vs. Auto Choice: The Decision Most Employees Never Actually Made
When you were enrolled in NPS, an investment pattern was chosen for you by default. Most subscribers never revisit it — and over a 25–30 year career, that one setting can be worth well over a crore rupees at retirement.
The Two Paths
Every NPS subscriber’s contributions get invested across Equity (Class E), Corporate Bonds (Class C), and Government Securities (Class G).
Auto Choice
PFRDA runs a pre-set lifecycle fund that automatically shifts the investment mix as the subscriber ages.
| Fund | Equity cap | Tapers |
|---|---|---|
| LC-75 | 75% | Age based |
| BLC | 50% | Age based |
| LC-50 | 50% | Age based |
| LC-25 | 25% | Age based |
Active Choice
You set your own split across E, C and G subject to the applicable limits. The calculator below compares a 75% equity Active Choice assumption with LC-75.
Equity exposure by age: Auto (LC-75) vs. Active
The chart updates automatically when you change the age and retirement inputs.
Why a Few Percentage Points of Equity Turns Into Lakhs
The difference between the two approaches accumulates gradually because the investment mix affects the return earned by the growing corpus.
This calculator is therefore an illustration rather than a prediction. Changing the starting corpus, pay, DA, promotions or assumed returns will change the result.
🧮 Your NPS Wealth & Pension Projector
Enter your own numbers. The calculator runs a month-by-month projection using the assumptions displayed below.
FAQs
How exactly do my promotions and DOJ feed into the projector?
Basic Pay is projected year by year using the selected 7th CPC pay matrix level and cell. Promotions are distributed across the remaining projection period and the applicable pay fixation logic is used.
Can I change the Present Pay Level?
Yes. Select the required Pay Level first. The Present Basic Pay dropdown will immediately rebuild itself using the cells belonging to that level.
Is this a guaranteed pension calculation?
No. The calculator is an illustrative projection based on assumptions entered by the user.