According to reports, it took around 2 years and 10 months to double from the Rs 5 lakh crore mark.
Assets under management (AUM) of the National Pension System (NPS) and the Atal Pension Yojana (APY) have crossed the milestone of Rs 10 lakh crore. In total, the number of subscribers has reached 66.2 million (6.62 crore). The total funds from the National Pension System (NPS) Private, Atal Pension Yojana (APY), and National Pension System (NPS) Lite stand at Rs 47,663 crore, Rs 30,051 crore and Rs 5,157 crore respectively.
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Deepak Mohanty, who is the chairman of the Pension Fund Regulatory and Development Authority (PFRDA), recently confirmed that the assets under management have reached the milestone of Rs 10 lakh crore. According to reports, it took around 2 years and 10 months to double from the Rs 5 lakh crore mark.
What are NPS and APY?
The National Pension System was introduced for all central government employees, except those in the armed forces who joined on or after January 1, 2004. There are many states and union territories that have adopted the NPS. As of May 1, 2009, NPS has been made accessible to all Indian citizens voluntarily.
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Starting on June 1, 2015, the Atal Pension Yojana was launched, which has significantly boosted the reach and effectiveness of social security schemes. Currently, it is open only to non-taxpayers.
According to reports, the PFRDA has been working on new measures that help the beneficiaries of NPS and APY at the time of retirement. They have been planning to introduce such a systematic withdrawal plan (SWP), which will help the pension account holders withdraw a lump sum amount according to their wishes after they reach the age of 60.
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Currently, when the NPS participant reaches the age of 60 years, they are only able to withdraw 60 per cent of the lump sum, as the remaining 40 per cent is automatically allotted to the purchase of an annuity. Deepak Mohanty revealed that the new SWP plan would allow the NPS beneficiaries to have periodic withdrawals monthly, quarterly, half-yearly or annually, from the lump sum amount until the age of 75 years.
The beneficiaries will also be given the option of mixed plans instead of single plans for the compulsory annuity purchase. It has also been revealed that the SWP and annuity mixed plans will be introduced by October 2023.
