Is ₹1.5 Crore Enough for Retirement? New NPS Survey Reveals the Truth

Interest in the National Pension System (NPS) is growing significantly. However, people’s current savings targets for retirement remain somewhat low. In this context, is saving a corpus of ₹1.5 crore sufficient?

People save to maintain their pre-retirement lifestyle, ensuring they do not have to compromise on anything after retiring. But is ₹1.5 crore enough for this? A recent survey has shed light on this matter.

People in India are showing greater interest in the National Pension System (NPS) than before. However, there is considerable confusion regarding how much savings are actually sufficient for retirement. To address this, the team behind the ‘HDFC Pension Fund Management NPS Preference Index 2026’ conducted a survey. It revealed that people consider a retirement corpus of approximately ₹1.5 crore to be adequate.

Target Has Increased

In the 2023 edition of the same survey, people had estimated this target at around ₹1.34 crore. This indicates that the retirement corpus target has risen over the past three years. However, according to the report, this amount may still fall short of what is required for adequate financial security post-retirement. The average retirement target set by people is less than 10 times their average annual household expenditure or income.

Growing Interest in NPS

Meanwhile, interest in the NPS has risen. The NPS Preference Index score increased from 54 in 2023 to 57 in 2026. This index measures public awareness, preference, and the willingness to consider adopting the NPS. Specifically, the ‘consideration score’—reflecting the likelihood of people considering the NPS—rose by 6 points to reach 59. Meanwhile, awareness regarding the NPS rose to 58, and it achieved an appeal score of 56.

Here is the key reason for investing in NPS

The survey also revealed that recent changes to the NPS are the primary factor motivating people to invest in the scheme; approximately 39% of respondents cited this as their reason for opting for the NPS. This was followed by tax savings (cited by 38%) and the expectation of better returns (cited by 36%) as reasons for investment.

However, there are also factors deterring people from the NPS. About 26% of respondents identified the lock-in period for funds as a concern, while 25% viewed the mandatory annuity purchase requirement as a hurdle. Interestingly, a lack of awareness about the NPS is no longer as significant an issue as it used to be.