Pension Fund Regulatory and Development Authority (PFRDA) has mentioned that Asset Under Management (AUM) originated via pension schemes has surpassed the Rs 6 lakh crore milestone. PFRDA is the statutory authority set up by an enactment of Parliament to manage, boost and ensure timely progress of the National Pension System (NPS) and pension schemes. AUM has crossed Rs 6 lakh crore mark under NPS and Atal Pension Yojana (APY) after 13 years after PFRDA came into existence. In the last 7 months, AUM has recorded a growth of Rs 1 lakh crore.
The total pension fund under management had increased to Rs 5 lakh crore in October 2020. The overall PFRDA subscriber base has increased to 4.28 crore. Over the years, the regulator of the pension sector has seen tremendous growth in NPS subscribers, with 74.10 lakh government employees and 28.37 lakh individuals joining the scheme from the non-government sector.
As of 21 May 2021, the subscriber count under the NPS and APY has surpassed 4.28 crore; AUM has increased to Rs 603,667.02 crore. Initially, NPS was introduced for central government employees with effect from January 1, 2004, and consequently approved by almost all state governments for its employees. Later, NPS was notified to all Indian citizens (resident, non-resident, and overseas) voluntarily and for corporates and their employees.
The massive growth in the pension corpus shows the immense faith the subscribers have in NPS and PFRDA. Amidst the pandemic, there is a growing realisation amongst individuals about the importance of retirement planning and preserving money to secure their financial well being in the long run.
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