Association of NPS Intermediaries set up to enhance the pension ecosystem: Key objectives

The Association of NPS Intermediaries - a collective platform of all stakeholders in the NPS ecosystem - was launched on the December 21, with an aim to brings together key stakeholders, strengthen subscriber welfare, and promote the growth of NPS as a retirement planning tool.

The new body will promote NPS as a retirement product, ensure transparent processes and collaborate with policymakers to improve the framework, and unites various stakeholders, including Pension Fund Managers.

With changing demographics and rapid urbanisation, early pension planning by individuals has been a necessity. The association was assured by M Nagaraju, Secretary, Department of Financial Services (DFS) that any feedback from them will be examined with urgency.

"...it will further strengthen & redouble our efforts in creating awareness to expand pension coverage in India," PFRDA Chairperson Deepak Mohanty said. With assets under management (AUM) of over Rs 13.8 lakh crore, both Atal Pension Yojana (APY) and the NPS have a total subscriber base of 8 crore. "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 said during the launch.

The primary objectives of ANI include:

-Representing Intermediaries' interests by bringing them together to address common challenges and advocate for collective interests.

-Promoting NPS as a reliable, flexible, and tax-efficient retirement planning tool.

-Focusing on subscriber welfare by ensuring a seamless and transparent experience for citizens.

-Collaborating with regulators and policymakers to refine and improve the NPS framework.

The AUM of NPS was over Rs 8.7 lakh crore in FY23, significantly higher from previous year's Rs 7.1 lakh crore. For FY24, this figure reached Rs 11.4 lakh crore.

The rise in subscribers and growing assets reflect the confidence in NPS as a trusted retirement product, PFRDA Chairperson added. Pankaj Sharma, Joint Secretary, DFS added that the young generation should be sensitised about the need for retirement planning.

The NPS recently also rolled out the Vatsalya scheme, announced during the Budget 2024, and meant for parents who wish to create a long-term corpus for their minor children.