The Pension Fund Regulatory and Development Authority expects the total pension assets under management in the non-government sector to go up by 62 per cent to ₹2 lakh crore in the FY23. The total assets in the non-govt sector as of June 30, 2022, stood at ₹1,22,979 crore.
“The latest growth is coming from the non-government sector. Active subscribers in the non-government sector are projected to go up 35 per cent to 50 lakh subscribers by the end of FY23,” said Supratim Bandyopadhyay, Chairman, PFRDA. The latest figure show 36,97,000 active subscribers in the non-govt sector.
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The projections are based on the growing public awareness of the products offered by PFRDA, and an increased level of traction from the private sector. “Additionally, the increase in incentives of distribution channels also has a positive effect, and intermediaries put in exclusive teams and digital apps for opening accounts,” said Bandyopadhyay.
PFRDA holds ₹7,72,023 crore under the National Pension System, which is 22 per cent of the ₹35,00,000 crore worth of pension assets in the country.
“For those people who are not comfortable with market volatility, we are developing a minimum assured return scheme with the focus of investing in minimum-risk products. This would assist in increasing participation,” he said. The development authority is planning to launch the minimum assured return scheme by October.
In keeping up with the numerous initiatives undertaken by PFRDA over the past few years to broaden pension coverage in the nation, PFRDA has now raised the maximum age of membership under the NPS-Private sector (i.e., All citizen and corporate model) from the existing 65 years to 70 years, with the exit age extended to 75 years.
Bandyopadhyay said that huge potential remains untapped and it is their aim to get more people to invest in retirement funds. They have roped in 72 retirement advisors to generate more awareness about pension schemes.