People retire in the country They are becoming aware about planning. This can be gauged from the fact that India’s pension asset under management is expected to increase to Rs 118 lakh crore by 2030 and the National Pension System (NPS) stake in it may be close to 25 per cent. This information has been revealed through a report.
There is a tremendous increase in NPS Private Sector AUM. And it has increased by 227 per cent to Rs 2,78,102 crore in the last five years, which was earlier Rs 84,814 crore. The report of DSP Pension and Fund Managers states that by 2050 India’s elderly population is expected to be 2.5 times. Also, after retirement, life expectancy rate will increase by an average of 20 years.
India’s pension market is currently quite small and its contribution to GDP is only 3 percent. The retirement saving gap is expected to increase by 10 per cent annually, which may potentially reach $ 96 trillion by 2050. The report said that Indian retail investors are moving faster towards the investment related investment. In the last decade, dependence on cash and bank deposits has come down from 62 per cent to 44 per cent, which reflects this change. There has been a strong growth in new NPS registration between FY 2020 and 2024, with 65 per cent increase in male customers and 119 per cent in the number of female customers.
The NPS Vatsalya launched by the government in September 2024 has received a good response, which has attracted more than 86,000 customers. The report further stated that NPS private sector AUM is estimated to be more than Rs 9,12,000 crore with more than 1.5 crore customers in the next five years. Rahul Bhagat, CEO, DSP Pension Fund Managers, said, “We believe that India’s pension market is on the path of rapid development and with the right policies and increasing awareness, it has the ability to unlock the significant value for its citizens. . “
