Proposed NPS tweaks will offer greater flexibility, say analysts

But systematic withdrawal plan carries risk that retirees may overdraw

At an average of 62 per cent, the one-year return of tier-1 equities schemes of the National Pension System (NPS) looks attractive. And a few features are likely to be added to NPS soon that could enhance its popularity.

Don’t deviate from asset allocation

The 62 per cent return is on a par with that delivered by the Nifty (61.7 per cent) over the past year. This is not surprising. Though pension fund managers (PFMs) are allowed to do active fund management, many may still mimic the index.

According to Jharna Agarwal, head, Anand Rathi Preferred: “NPS funds have not