Why has NPS become popular?

As pointed out in the economic survey 2022-23 that the pension sector is progressing much faster than the nominal growth of the economy and population, the assets under management (AUM) of the National Pension System (NPS) more than doubled in the last three years. As per the NPS trust's data, the AUM of NPS (including government, corporate and all citizen models) rose to 8.4 trillion from Rs 4.1 trillion seen in March 2020. Experts say that increased awareness on post-retirement financial security has brought in more retail investors. Low cost, market-linked returns, flexible investment options and tax benefit too attracted more investors towards NPS.