The International Financial Services Centres Authority (IFSCA) on February 12, 2026, approved the Draft IFSCA (Pension Fund) Regulations, 2026.
The following has been stated:
• The objective of the draft is to create a secure, transparent, and globally competitive platform for long-term retirement savings and position IFSC as a hub for retirement solutions.
• The draft regulations allow Pension Fund Managers (PFMs) to offer voluntary pension schemes to individuals above 18 years, with flexible investment options including Active Choice (self-selected asset allocation) and Auto Choice (life-cycle based allocation). A unique Healthcare Benefit Option permits up to 10% allocation to a separate healthcare sub-account for medical expenses or insurance at retirement.
• The framework also provides flexible withdrawal options, including partial withdrawals, systematic withdrawal plans, deferral up to 75 years, and portability between PFMs.
• The regulations mandate strong governance standards, including registration requirements, minimum net worth norms, board oversight with independent directors, and a robust risk management framework.
• PFMs are allowed diversified global investments across equities, fixed income, and alternative assets, subject to prudential exposure limits. Overall, the framework strengthens IFSC’s ecosystem for long-term savings and retirement planning.
