The private sector can be the reason for bringing future growth in the National Pension System (NPS).
The private sector could be the reason for bringing future growth in the National Pension System (NPS). Under this system, there has been a rapid increase in the number of clients as well as the assets under management in the last five years.
National Pension System (NPS) Reasons for bringing future growth in the private sector (Private Sector) Maybe. Under this system, customers in the last five years (Customers) Along with the number of assets under management there has been a rapid increase. This estimate has been expressed in a research letter prepared by Deepak Mohanty, member of the Pension Fund Regulatory and Development Authority (PFRDA). Accordingly, NPS subscribers between the years 2017-18 and 2021-22 (Subscribers) The number of subscribers has increased three times, with the highest number of Atal Pension Yojana (APY) subscribers. At the same time, the assets under management also increased four times, with maximum growth in NPS schemes.
The research letter states that the annual return rate in various NPS schemes ranges between 9.0-12.7 per cent and APY is 9.4 per cent. They have the advantage of getting continuous income. Apart from this, they are also competitive in comparison to alternative savings instruments.
NPS was started in the year 2004
NPS was started in the year 2004. Whereas, APY was started in 2015. Since then the pension sector of the country has expanded significantly. The total number of subscribers increased from 15 million in March 2017 to 52 million in March 2022, with the highest number of APY subscribers. The number of subscribers of APY has increased almost four times from 93 lakhs to 4.05 crores. APY account holders account for more than 78 percent of the pension subscribers.
The share of pension assets in assets under management has increased four-fold from Rs 1,75,000 crore to Rs 7,37,000 crore in the last five years. Most of these assets are also under NPS which is between Rs 1,70,000 crore and Rs 7,11,000 crore. This is 96 per cent of the total assets, the remaining four per cent is contributed by APY.
Mohanty said that India’s pension sector provides income security in old age. He said that the future expansion in NPS will come from the salaried and self-employed people and from the private sector. It has been said in the research letter that this is the beginning for the pension sector in India and with increasing per capita income, it has immense potential for growth.
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