National Pension System on the Rise: New Association to Boost Coverage

The National Pension System (NPS) assets are expected to reach Rs 15 lakh crore by this fiscal year's end, according to PFRDA Chairman Deepak Mohanty. Despite challenges in corporate employee uptake, a new association of NPS intermediaries aims to enhance awareness, streamline processes, and expand coverage across India.

The National Pension System (NPS) is set to achieve a significant milestone with its assets under management (AUM) projected to reach Rs 15 lakh crore by the end of the current fiscal year, according to Deepak Mohanty, Chairman of the Pension Fund Regulatory and Development Authority (PFRDA).

Speaking at the launch of the Association of NPS Intermediaries, Mohanty highlighted the persistent challenge of low uptake rates among corporate sector employees. This new association, comprising various stakeholders like pension fund managers, aims to advocate for NPS as a flexible and tax-efficient retirement option while ensuring subscriber welfare through transparent processes.

Despite a robust growth forecast, the association focuses on expanding NPS coverage by targeting workforce segments across India, especially in informal sectors, through collaborative efforts with digital companies and awareness campaigns. These initiatives seek to bolster the pension system's reach and stronger engagement with corporates.

(With inputs from agencies.)