Expected rise in senior citizens positions NPS as India's pension cornerstone: LIC's Siddhartha Mohanty

LIC

The expectations of rise in the senior citizens provides a opportunity for the National Pension System (NPS) to become cornerstone of India's pension system, said mamaging director and chief executive officer of Life Insurance Corporation of India.

Mohanty said that the expected rise in senior citizens in the country provides a challenge as well opportunity for the NPS.

"The number of senior citizens is projected to grow from 14 crore in 2021 to 17 crore by 2026 and further to 20 crore by 2031," Mohanty added during the launch of Association of NPS Intermediaries.

"The challenge lies in ensuring financial security for a rapidly ageing population. The opportunity, however, is the potential for NPS to become the cornerstone of India's pension ecosystem," Mohanty added.

Scheme C in the non-government sector has delivered an average return of 9.4 percent over the last 15 years, outperforming corporate bond funds managed by mutual funds at 7.4 percent. Scheme G in the non-government sector has achieved an average return of 8.8 percent, Mohanty said.

For government sector subscribers, NPS has maintained a competitive CAGR of 9.6 percent, he added.

Today, the Association of NPS Intermediaries was officially launched and bring together key stakeholders from the National Pension System (NPS) ecosystem to foster collaboration, strengthen subscriber welfare, and promote the continued growth of NPS as a critical retirement planning tool for the citizens of India.