New Delhi, Delhi, 29th of November, 2024 :The Pension Fund Regulatory and Development Authority (PFRDA) organised an Interactive Corporate Awareness Programme on the National Pension System (NPS) in collaboration with the Federation of Indian Chambers of Commerce & Industry (FICCI), today. This event underscored the pivotal role of retirement planning and aimed to encourage corporate entities and individuals to adopt NPS for long-term financial security.
During his keynote address, Dr. Deepak Mohanty, Chairman, PFRDA, emphasised the urgent need for adequate retirement planning in India, particularly considering the challenges posed by an aging population and changing social dynamics.
Kerala has shown encouraging growth in its contribution to NPS adoption. The state accounts for 3.38% of private sector subscribers under NPS, showcasing increasing awareness of the scheme’s benefits. Moreover, 216 corporates from Kerala are registered under NPS, out of a total of 18,152 corporates nationwide that have adopted the scheme for their employees. As of November 2024, the total Assets Under Management (AUM) for NPS and Atal Pension Yojana (APY) is ₹13.4 lakh crore, with the subscriber base of over 7.9 crore across the country.
The event featured notable discussions on the benefits of the NPS retirement scheme, led by Mr. Sumit Kumar, Chief General Manager, PFRDA. Shri Subash A.K., General Manager, Cochin Shipyard, shared insights on corporate implementation of NPS, highlighting best practices and success stories. Additionally, Shri Saurabh Chaturvedi, Vice President, HDFC Pension Management Co. Ltd., elaborated on the process of corporate onboarding under NPS and its advantages for corporates and its employees.
Attendees was able to engage directly with industry leaders and experts. This programme is part of PFRDA’s ongoing efforts to enhance corporate participation in NPS and extend its benefits to a broader audience. Corporate entities, SMEs, and professionals are invited to join this interactive session and explore the vast opportunities offered by NPS for both employers and employees.
Challenges and Opportunities
India’s demographic trends, characterised by a rapidly aging population and increasing life expectancy, emphasize the critical need for financial security post-retirement. However, only 5.7% of Indian household assets are allocated to provident and pension funds, reflecting a significant gap in retirement preparedness. The rise of the gig economy and the unorganised sector, where 93% of the workforce lacks statutory social security, further amplifies the relevance of NPS.
PFRDA’s initiatives, including systematic awareness campaigns, partnerships with trade bodies, and innovative subscriber-centric features, aim to bridge this gap by promoting financial literacy and creating a pensioned society.
ABOUT PFRDA
The Pension Fund Regulatory and Development Authority (PFRDA) was established to promote, develop, and regulate the National Pension System (NPS) and other pension schemes, ensuring a robust framework for retirement planning in India. Initiatives such as the Atal Pension Yojana (APY) have played a pivotal role in extending financial security to the unorganized sector, emphasizing the government’s vision of inclusive growth.
Taking a step further, PFRDA has recently introduced NPS-Vatsalya, extending the benefits of NPS to minors. This initiative is designed to instill the habit of early savings among young individuals, helping families lay the foundation for a secure financial future. In the span of two months more than 69,000 minors subscribers have been enrolled under the scheme. Through the strategic collaborations and innovative schemes like NPS-Vatsalya, PFRDA aims to strengthen the culture of retirement planning and financial independence across all age groups.
About The Author
More Stories
Resonance Global Celebrates Unprecedented Success Of Its Students In International Competitive Tests Of SAT And IELTS.
100th Tansen Sangeet Samaroh Establishes Guinness World Record.
Holiday Season Round The Corner? 6 Daily Habits That Could Be The Reason Behind Your Fatty Liver : Dr. Akhil Deshmukh, Consultant – Hepatology And Liver Transplant, Aster Whitefield Hospital, Bengaluru.