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Aided by a strong show from the private sector, the overall National Pension System (NPS) assets under management (AUM) grew robust 28 per cent at ₹12.28 lakh crore as of June 8, latest PFRDA data showed.
Private sector, which has been key reason behind NPS assets’ sharp increase in recent years, continues to lead the charge with whopping year-on-year growth of 39.02 per cent at ₹2.42 lakh crore as of June 8, it showed.
However, this is much lower than the Government sector NPS assets under management of ₹9.43 lakh crore, which are up 25 per cent year over year.
As of June 8, the number of private sector subscribers — both Corporate and All-Citizen-Model — stood at 56.47 lakh, up 18.53 per cent year over year.
The number of subscribers in Corporate category stood at 20.13 lakh. About 15,900 companies are part of NPS and India has 93 lakh government sector subscribers in NPS.
The growing significance of the private sector in NPS is evident as its AUM share increased from 13.1% in March 2019 to 20% in March 2024.
Also, the share of private subscribers in NPS increased from 21.6 per cent in March 2019 to 37.5 per cent in March 2024.
In 2023-24, as many as 9.47 lakh subscribers (both government and private sector) have on-boarded NPS. Of this 9.47 lakh new subscribers, as many as 8.10 lakh subscribers were from ‘all citizen model ‘ and 1.37 lakh were Corporate employees.
The number of new NPS and APY subscriber registrations till June 9 this fiscal stood at 1,47,901, PFRDA data showed.
PENSION ASSETS As % of GDP
In India, pension assets as a percentage of GDP are about 16.5 percent, while the same ratio of developed countries like the UK, US and Australia is beyond 100 percent.
The same ratio of OECD countries was 81 per cent in 2022. Further, for some of Scandinavian countries like Denmark, the Netherlands and Iceland, it was over 200 per cent in 2021.
NPS GROWTH JOURNEY
The rapid growth of overall NPS assets is evident as they reached the ₹10 lakh crore mark only in August last year.
In nine months, the overall assets of NPS have jumped ₹2 lakh crore, PFRDA data showed.
After its implementation in 2009, NPS took six years and six months to reach the milestone of ₹1 lakh crore AUM. It then took four years and 11 months to increase AUM further to ₹5 lakh crore.
NPS AUM had doubled to ₹10 lakh crore as of August 25 last year from ₹5 lakh crore in just two years and ten months.
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