The uncertainties emerging out of the COVID-19 pandemic seem to have expedited enrolments in the National Pension System (NPS), a voluntary defined contribution pension scheme of the Government of India, as many private sector employees and employers were found to be seeking financial security, post retirement, through pension schemes.
As per data released by the Pension Fund Regulatory and Development Authority (PFRDA), which administers the NPS, 1.03 lakh new individual subscribers were added in the first quarter of FY21, an increase of 30% from the same period last year, taking the total corporate subscribers to 10.13 lakh in the age group of 18 to 65 years.
Besides, 206 corporates were also enrolled during the quarter.
Among the new 1,02,975 subscribers registered, 43,000 had routed their subscription through their employer/corporate, while the rest had voluntarily enrolled in the scheme.
The number of new subscribers in first quarter FY21 were 30% more than the 79,230 subscribers added in the first quarter of FY20.
“The National Pension Scheme (NPS) has been a success among the corporate employees. While financial planning often took a backseat in an individual’s life, this pandemic has brought it to the forefront, creating awareness for financial security at such testing times,” PFRDA chairman Supratim Bandyopadhyay said.
“During this pandemic, a growing realisation for both corporates and individuals has emerged that retirement planning is not a mere saving or tax benefit choice,” Mr. Bandyopadhyay added.
