Pension is a decision for now and can’t be deferred, says PFRDA Chairman

The Pension Fund Regulatory and Development Authority (PFRDA) held a webinar to create awareness about retirement planning through the National Pension System (NPS). The webinar titled “Securing retirement with NPS and Insights for Employers” was organised in association with the PHD Chamber of Commerce and Industry (PHDCCI) New Delhi and Gurgaon Chamber of Commerce and Industry (GCCI), Gurugram.

Delivering his keynote address in presence of leading Indian corporates, PFRDA Chairman Shri Supratim Bandyopadhyay said: “Pension over the years has been seen as a subject which is not to be discussed immediately. Young people want to postpone it because they think their retirement still is 30-40 years ahead, therefore why talking pension now. But I believe this is the time one should start planning for retirement, otherwise it is really difficult to create a corpus which is required for one’s post retirement life.”

“Without retirement planning, longevity has become a big challenge and the post retirement life is becoming very difficult to pass. If you don’t have enough corpus, your post retirement survival will outlive the same.”

Speaking on the performance of NPS, Shri Bandyopadhyay said the growth in subscribers base is steady over the years, and it was 24% in last one year. So far, total subscribers base is a little above 4.5 crore and more than 6.5 lakh crore AUM. Therefore the growth rate is almost 30%. “We expect AUM to become 7.5 lakh crore and an addition of 10 million new customers by the end of FY2021-22.”

NPS has certain advantages like ease of joining along with income tax benefits and a good rate of return. It is the lowest cost product in India, and comparatively least cost incurrig the world over.

“It is very important we start early even with a small amount and during the service, one may increase the contribution with his/ her increased salary, and therefore employers have a big role to play in creating positive impact in their employees’ mind for early joining of NPS,” the PFRDA Chairman concluded.

The total number of NPS and APY subscribers as on 11th September 2021 is 456.35 lakh and the total assets under management (AUM) is Rs 657,073 crore.

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