Private sector subscribers under NPS cross over 12 lakh in FY25

IANS April 23, 2025 311 views

India's pension landscape is undergoing a significant transformation with the National Pension System reaching new milestones. The government has introduced innovative schemes like NPS Vatsalya for minors and the Unified Pension Scheme to enhance financial security. These initiatives aim to provide more comprehensive retirement solutions for both public and private sector employees. The expansion reflects a strategic approach to building a more inclusive and sustainable pension ecosystem.

"Pension for All must become a national priority" - Deepak Mohanty, PFRDA Chairman
Private sector subscribers under NPS cross over 12 lakh in FY25
New Delhi, April 23: The National Pension System (NPS) has achieved significant growth of private sector subscriber enrolment of over 12 lakh during 2024-25, taking total subscriber number to over 165 lakh by March 2025, according to the government.

Key Points

1

NPS subscriber base crosses 12 lakh in FY25

2

Assets under management grow 23% to Rs 14.43 lakh crore

3

New schemes target financial security for employees

NPS Vatsalya , a scheme specifically designed for minors, introduced in September 2024 has registered over one lakh subscribers, according to a Ministry of Finance statement.

The assets under management (AUM) for both NPS and Atal Pension Yojana (APY) expanded by 23 per cent during 2024-25 to Rs 14.43 lakh crore by end-March 2025.

NPS has emerged as a cornerstone of India's pension sector with an accumulated corpus of Rs 14.4 lakh crore and 8.4 crore subscribers under NPS and the Atal Pension Yojana (APY), PFRDA chairman Deepak Mohanty said earlier this month.

Mohanty said the focus of the pension system remains on expanding coverage, ensuring financial sustainability, and building a pension-inclusive society for future generations.

'Pension for All' must become a national priority, requiring policy action to ensure a dignified and secure future for our aging population.

Unified Pension Scheme set to roll out from April 1, to benefit 23 lakh employees

Meanwhile, central government employees with at least 25 years of service are now eligible for a fixed pension equal to 50 per cent of their average basic salary from the last 12 months before retirement under the new Unified Pension Scheme (UPS).

The government introduced the UPS to offer more financial security after retirement to at least 23 lakh Central government employees, particularly for those who prefer a stable and predictable income instead of a market-linked pension.

Employees, who have served for more than 10 years but less than 25 years, will receive a minimum pension of Rs 10,000 per month. In case of the pensioner's death, their family will be entitled to 60 per cent of the last pension drawn as a family pension.

Central government employees, currently under the NPS, will have the option to switch to the UPS. The scheme is designed as a hybrid model, incorporating features from both the Old Pension Scheme (OPS) and the NPS.

Reader Comments

P
Priya K.
This is such encouraging news! More financial security for retirees is exactly what India needs. The NPS Vatsalya for minors is especially brilliant - starting pension planning early makes so much sense. đź‘Ź
R
Rahul S.
While the growth numbers are impressive, I wish there was more clarity on how the UPS compares to NPS in terms of long-term returns. The fixed pension sounds good, but will it keep up with inflation over 20-30 years?
A
Anjali M.
Just enrolled my 12-year-old in NPS Vatsalya last month! The process was surprisingly simple through the online portal. More parents should know about this option - compound interest over 40+ years could make a huge difference.
S
Sanjay P.
The hybrid pension model is a smart move. Gives people options based on their risk appetite. Though I wonder if the Rs 10,000 minimum pension will be enough given rising living costs, especially in metro cities.
M
Meena R.
My father retired last year under NPS and the lump sum payment really helped with medical expenses. Happy to see the system evolving with more options. The family pension provision is particularly thoughtful.
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Vikram J.
The 23% AUM growth is impressive, but I hope PFRDA maintains transparency about fund performance. More frequent updates on how the money is being invested would build greater public trust in the system.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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Tags:
National Pension System NPS Vatsalya Unified Pension Scheme Deepak Mohanty Pension Reform
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