People are getting attracted towards retirement planning!
People in the country are becoming aware about retirement planning. This can be estimated from the fact that India's pension assets under management are expected to increase to Rs 118 lakh crore by 2030 and the share of National Pension System (NPS) in this can be close to 25 percent. This information has come to light through a report.
NPS private sector AUM is witnessing tremendous growth. And it has increased to Rs 2,78,102 crore with a jump of 227 percent in the last five years, which was earlier Rs 84,814 crore. The report of DSP Pension Fund Managers states that India's elderly population is expected to increase 2.5 times by 2050. Also, the life expectancy rate after retirement will increase by an average of 20 years.
At present, India's pension market is quite small and is only 3 percent of GDP. The retirement savings gap is expected to grow by 10 percent annually, potentially reaching around $96 trillion by 2050. The report said that indian retail investors are increasingly moving away from traditional savings methods to market-linked investments. The reliance on cash and bank deposits has fallen from 62 percent to 44 percent over the past decade, which shows this change. Strong growth has been seen in new NPS registrations between FY 2020 and 2024, with male subscribers increasing by 65 percent and female subscribers by 119 percent.
NPS Vatsalya, introduced by the government in september 2024, has received a good response, attracting more than 86,000 subscribers. The report further said that the AUM of NPS private sector is estimated to exceed Rs 9,12,000 crore within the next five years with over 1.5 crore subscribers. rahul Bhagat, CEO, DSP Pension Fund Managers, said, "We believe that India's pension market is on the path of rapid growth and with the right policies and increasing awareness, it has the potential to unlock significant value for its citizens."
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