NEW DELHI:
The Pension Fund Regulatory and Development Authority (PFRDA) in collaboration with Federation of Indian Chambers of Commerce & Industry (FICCI) Kerala State Council organized a webinar on ‘National Pension System (NPS) for Corporates – Understanding the Impact of Pandemic on Retirement Benefits Planning’. During the webinar 56 corporates were present. Supratim Bandyopadhyay, Chairman, PFRDA was the keynote speaker.
India’s pension savings is only 2.1 per cent of the gross national disposable income. If total assets are taken under pension sector in India are taken into account, that amounts to Rs 25,00,000 crores only, which is 10 per cent of the GDP. This figure is 148 per cent of GDP in Switzerland and 83 per cent in the United States.
The total assets under management under NPS & APY amounts to over Rs 5 lakh 20 thousand crores. So far 8,160 corporates have registered with PFRDA, of which 10.5 lakh actual NPS subscribers are on board. NPS is the only product apart from a few others run by insurance and mutual fund industry which ensures a regular flow of income as 40 per cent of corpus needs to be annuitized under NPS.
Supratim Bandyopadhyay, Chairman, PFRDA, said “We believe Covid is an opportunity rather than a challenge for us, There was a spurt in NPS growth even in April to June. We have witnessed 15 per cent Y-o-Y growth in the number of NPS subscribers and 20-25 per cent Y-o-Y growth in corpus during the Covid period.”
He also added, “Planning for pension and retirement should start early because how much we need at retirement is difficult to answer because of inflation, medical costs etc.”
