Pension assets under NPS rise 30% YoY in July 2021: PFRDA
Premium- NPS was first launched for central government employees on 1 January 2004 and was consequently accepted by all State governments for their employees
NEW DELHI: Combined assets under management (AUM) of the National Pension System (NPS) and Atal Pension Yojana increases to 29.88% year-on-year to touch ₹6.27 trillion as of 31 June 2021. On the same day in 2020, the combined AUM of both schemes stood at ₹4.83 trillion.
The total NPS subscriber base was at 4.42 crore in July 2021 from 3.57 crore during last year, showing 23.79% year-on-year growth.
Number of subscribers in various schemes under NPS and APY
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Also, Pension Fund Regulatory and Development Authority (PFRDA) press release issued on 14 August said, "As on 31st July 2021, total pension assets under management stood at ₹6,27,374 crore showing a y-o-y growth of 29.88%."
Total Assets under Management under NPS and APY
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NPS was first launched for central government employees on 1 January 2004 and was consequently accepted by all State governments for their employees. Afterwards, NPS was extended to all citizens of India (resident/non-resident/overseas) voluntarily and to private employers for its employees. NPS is necessary for government employees who joined service after 2004 and it was opened to the private sector in 2009.
The Pension Fund Regulatory and Development Authority (PFRDA) has also allowed annuity service providers, which are life insurers such as LIC, ICICI Prudential Life, etc., to handle surrender requests from annuitants (who were erstwhile NPS subscribers) and intermediaries including Nodal officers of the Government Sector without referring to PFRDA, Central Record Keeping Agency or National Pension System Trust.
You must know that NPS is one of the low-cost investment products. It permits exposure to equity for up to 75% of the corpus and is rationally tax efficient.
Besides, the Atal Pension Yojana is a periodic contribution-based pension product and provides a definite pension of ₹1,000-5,000 to subscribers.
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