Synopsis
The National Pension System (NPS) has reached a significant milestone, accumulating a corpus of Rs 14.4 lakh crore with 8.4 crore subscribers. PFRDA chairman Deepak Mohanty emphasizes the importance of expanding coverage and ensuring financial security for an aging population at the 'International Research Conference on Pension 2025.'Key Takeaways
- Rs 14.4 lakh crore corpus under NPS.
- 8.4 crore subscribers across NPS and APY.
- Focus on financial sustainability and coverage.
- Need for inclusive pension schemes for aging population.
- Importance of transforming pension framework.
New Delhi, April 5 (NationPress) The National Pension System (NPS) has established itself as a vital component of India's pension landscape, boasting a total corpus of Rs 14.4 lakh crore and 8.4 crore subscribers through both NPS and the Atal Pension Yojana (APY), as reported by PFRDA chairman Deepak Mohanty.
During the inaugural 'International Research Conference on Pension 2025' held here, Mohanty emphasized that the principal aim of the pension framework is to enhance coverage, ensure financial stability, and cultivate a pension-inclusive society for future generations.
This two-day conference was hosted by the Pension Fund Regulatory and Development Authority (PFRDA) in partnership with the Indian Institute of Management Ahmedabad (IIMA), commemorating a significant achievement in India’s pursuit of secure income for the elderly.
Pankaj Chaudhary, Minister of State for Finance, remarked that India’s demographic shift is accelerating, with projections indicating that 19 percent of the population will be elderly by mid-century. Thus, achieving financial autonomy through inclusive pension initiatives is not just an objective but an essential requirement for the nation.
The concept of ‘Pension for All’ should be prioritized nationally, necessitating policy measures for securing a dignified future for our senior citizens, he added.
Nagaraju Maddirala, Secretary of the Department of Financial Services, underlined the transformative phase of India’s pension structure. With the introduction of the Unified Pension System and initiatives to expand coverage, the government is laying a solid foundation for secure retirement.
The Unified Pension System (UPS) guarantees a pension amounting to 50 percent of the average basic pay received in the last year before retirement. Currently, India's pension assets represent roughly 17 percent of GDP, which is significantly lower than the OECD average of over 80 percent, highlighting the urgent need for improved retirement preparedness.
Experts engaged in discussions during the conference to analyze strategies from various nations aimed at expanding pension coverage, creating a sustainable pension framework, and addressing challenges in including informal sector and gig economy workers.
The event also featured a session titled 'Global Lessons on New and Innovative Investment Practices in the Pension Industry,' which highlighted cutting-edge investment strategies, product design approaches, and shared international success stories to motivate advancements in India’s pension sector.
Furthermore, a discussion occurred on the “Pension Forum for Regulatory Coordination and Development of Pension Products,” where a panel comprising regulators and government officials deliberated on aligning policies for pension products across different regulators and innovative strategies to enhance the growth and accessibility of pension offerings in India.
