In the next 30 years, one out of five people will be more than 60 years, said PFRDA Chairman Supratim Bandyopadhyay while addressing a webinar on National Pension System for corporates.
The chairman said that planning for retirement becomes extremely important for this aging population. He said, “Since total pension assets in India is only 14% of GDP compared to other countries where it is 80-100%, there is a lot to catch up to do.”
Bandyopadhyay observes that the person who retires at the age of 60 years lives for couple of decades, so unless they are financially protected it will become difficult to lead a decent lifestyle post retirement.
Talking about growth in retirement products like NPS he said, “NPS has grown at a decent pace as there has been over 18% growth in the customer base even during the pandemic period.”
Meanwhile, as on February 28, 2021, the total AUM of all pension schemes stood at Rs.5.59 lakh crore with 414.70 lakh subscribers.
As of now, the percentage of corporate employees joining NPS is only 2%. And so far 8,300 corporates have registered with PFRDA, from which more than 11 lakh employees have become NPS subscribers.
“With financial literacy, nudging and mentoring is also required on the part of corporates for convincing their employees to join NPS,” said Bandyopadhyay.
