The National Pension System (NPS) has added more than 12 lakh private subscribers during 2024-25. These include corporate subscribers, eNPS, and those who enrolled through Point of Presence (PoPs). With these, the total number of subscribers under NPS reaches 165 lakh, as of March 31, 2025.
NPS has several models (government, corporate, all-citizen, vatsalya) for subscribers to invest in. Until now, it has been a mandatory scheme for central government employees and optional for states. Since its launch for government employees in 2004, for all citizens in 2009, and for corporate employees in 2011, the scheme has been constantly growing. However, this year's growth trajectory may change due to the launch of the unified pension scheme (UPS).
For now, the UPS is available as an option for central government employees to select for their retirement benefits. As this is an irrevocable one-time option, one needs to be extra careful while exercising this option.
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National Pension System (NPS)
Returning to NPS, the scheme's growth shows its appeal among the masses. Another not-ignorable factor of NPS is its flexibility. There is no other scheme in India that is available to all strata of people, including the salaried, self-employed, resident, or even non-resident Indians (NRI). In FY 2025, central government subscribers grew by around 5 per cent and state government subscribers rose by around 8 per cent.
NPS account requires only a Rs 1,000 contribution every year to keep the account active, and subscribers have the facility to increase the deposit when they have a surplus. Similarly, withdrawals can either be done in a lump sum or spread over a few years.
In FY 2025, the total asset under management (AUM) in NPS (including NPS Vatsalya) and Atal Pension Yojana (APY) (including NPS Lite) has increased by around 23 per cent to approximately Rs 14.43 lakh crore, according to PFRDA data.
NPS Vatsalya
NPS Vatsalya is the latest addition to the NPS variants. Launched in 2024, the scheme caters to children by providing them with social security. Since its launch, more than 1 lakh subscribers have joined the scheme.
Atal Pension Yojana (APY)
Note that APY offers a fixed amount of pension chosen by the subscriber, ranging from Rs 1,000 to Rs 5,000. One can apply for the scheme until the age of 40 years.
Returns
APY was launched in 2015. Since its inception, its return has been 9.11 per cent, and over one year 9.12 per cent. Due to their exposure to the market, NPS is promoted for long-term financial planning. It invests in equity, corporate bonds, and government securities. As of March 29, 2025, its one-year return from equity has been 6.35 per cent and from corporate bonds and government securities, it is 9.18 per cent and 10.03 per cent, respectively.
