Association Of NPS Intermediaries Launched To Improve Pension System

The Association of NPS Intermediaries (ANI) was launched on December 21 to unite key stakeholders in the National Pension System (NPS) ecosystem. The platform aims to support the growth of NPS and collaborate with policymakers to enhance India’s pension system.

With the rise of urbanization and shifting demographics, early retirement planning has become increasingly essential. M Nagaraju, Secretary of the Department of Financial Services (DFS), assured the association that their feedback would be addressed promptly. He also highlighted the association’s role in fostering collaboration and innovation within the ecosystem, noting that this platform would address challenges and unlock new opportunities to expand pension coverage across India, particularly in underserved areas.

Deepak Mohanty, Chairperson of PFRDA, emphasized the role the association will play in creating awareness and expanding pension coverage in India. There are currently 8 crore members of the NPS and Atal Pension Yojana (APY), with assets under management (AUM) of over Rs 13.8 lakh crore. By 2031, there would likely be 20 crore senior folks, a considerable increase from the 14 crore in 2021.

Primary Objectives of ANI:

The ANI's main objective is to represent the interests of intermediaries by uniting them to address shared challenges and promoting their interests as a group. To promote NPS as a flexible, tax-efficient instrument for long-term retirement planning, the association aims to ensure that all NPS subscribers have a seamless and transparent experience. Also, it collaborates with regulators and policymakers to continuously improve and refine the NPS framework to support its growth.

The NPS’s AUM has seen impressive growth, reaching Rs 8.7 lakh crore in FY23, up from Rs 7.1 lakh crore in the previous year, with a projected Rs 11.4 lakh crore in FY24. This reflects growing confidence in NPS as a trusted retirement product. Pankaj Sharma, Joint Secretary at DFS, also stressed the importance of educating the younger generation about the need for retirement planning.