New Delhi – The Indian government announced on Friday that Central Government employees will soon have more choice when saving for retirement.
The Ministry of Finance approved an extension of the LC75 and BLC (Balanced Life Cycle) investment options in both the National Pension System (NPS) and the Unified Pension Scheme (UPS).
Why the move? Employees have asked for investment choices that match those of private‑sector workers. The new plans give workers greater flexibility to tailor their retirement portfolios to their own risk tolerance.
Here’s what the different options look like:
| Option | How it’s built | Age‑based changes |
|---|---|---|
| Default | A mix set by the Pension Fund Regulatory and Development Authority (PFRDA) | Updated periodically |
| Scheme G | 100 % in government securities | Low‑risk, steady returns |
| LC‑25 | Up to 25 % in equities | Equity share tapers as you age |
| LC‑50 | Up to 50 % in equities | Same tapering rule |
| BLC | Modified LC‑50; equity shares fall from age 45 | Lets you stay in equities longer |
| LC‑75 | Up to 75 % in equities | Equity share tapers more sharply |
The “automatic taper” means that by age 55 the equity portion drops to 15 % for LC‑75 and to 35 % for BLC. This guards against big market swings just before retirement while keeping some growth potential earlier in a career.
This update should make planning for retirement easier and more aligned with each employee’s personal goals. The Ministry’s statement emphasizes that the new choices let workers pick a balance of risk and return that suits them best.
— Information provided by .
Source: ianslive
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