New Delhi, Sept. 3 -- Deciding between Active Choice and Auto Choice for your National Pension System (NPS) account might feel like a minor detail when you first begin planning for retirement. However, this single decision dictates how your capital is divided among equity, corporate debt, and government bonds. Ultimately, the ideal choice hinges on your comfort level with directing your own investments.

As of August 2026, guidelines from the Pension Fund Regulatory and Development Authority (PFRDA) allow subscribers in Common Schemes to pick either strategy. Under Active Choice, you can assign up to 75% of your portfolio to equities, whereas Auto Choice relies entirely on age-based formulas.

Auto Choice is designed for NPS subscribers w...