NPS, APY Add 10 Million Subscribers, AUM Soars 23% To Rs 14.4 Lakh Crore

The Atal Pension Yojana (APY) and the National Pension System (NPS) added 10 million new subscribers in FY 2024–25, taking the total subscriber base to 84 million. This is 14.2 per cent more than last year, according to the Financial Stability Report released in June 2025.

Along with the rise in subscribers, the overall assets under management (AUM) of the two retirement schemes rose 23.10 per cent year-on-year (y-o-y) to Rs 14.4 lakh crore. This is a healthy gain from Rs 11.7 lakh crore in the previous year.

According to the report, the growth in subscriber base and overall AUM of these schemes indicates increased awareness among citizens towards long-term financial planning for retirement needs, especially through regulated and structured pension products.

Fixed Income Remains The Most Preferred Choice

Despite the increase in contributions, the investment pattern in NPS and APY continues to be conservative. As of March 2025, a total of 80.80 per cent of total assets was invested in fixed income assets.

This includes 54.60 per cent of state development loans (SDLs) and government securities (G-secs), 23 per cent of corporate bonds, and 1.30 per cent of money market instruments. Another 1.90 per cent is held as cash and net current assets. The rest is split between equity and other alternative investments, such as real estate investment trusts (Reits) and infrastructure investment trusts (InvITs).

The attraction to fixed income arises from the schemes' focus on security and assured return, especially for low and middle-class subscribers. The instruments keep risk at bay and offer certain growth of retirement wealth.

According to the report, while young professionals are investing in NPS and the total asset mix is often shaped by the subscriber’s age and risk tolerance, the overall exposure to equity is still growing at a slow rate.

Category-Wise Contributions

Notably, all segments of the population contributed to the increase in subscriber base and asset growth in NPS. They included government employees, corporate sector employees, and individual citizens who pay voluntarily under the "All Citizen Model."

The APY, which is designed for workers in the unorganised sector, also continued to experience strong growth with the help of auto-debit facilities and government co-contribution in some cases. It has come to serve as a pillar for facilitating retirement planning among the lower-income segments.

The "All Citizen Model" and corporate NPS contributed much to the growth in assets, as salaried class and private sector employers increasingly adopted the scheme as part of long-term financial planning.

New Pension Developments In Regulation

The Department of Financial Services had introduced the Unified Pension Scheme (UPS) in August 2024 as a convergence between autonomy and existing pension models. It is currently being implemented by the Pension Fund Regulatory and Development Authority (PFRDA).

The UPS structure allows subscribers to maintain greater control over their pension accounts, including investment choices and fund managers. Central recordkeeping agencies have also introduced the required systems needed to support this structure.

The strong growth in NPS and APY indicates that more people are making progress toward financially securing their retirement. With easier online onboarding, improved quality of services, and increased financial literacy, the pension sector is all set to expand further.