Short-Term Trading Is Exciting, But Long-Term Savings Secure A Family’s Health And Well-Being, Says V. A. Nageswaran

Over the past year, the National Pension System (NPS) has seen structural evolution directed towards financial inclusion, digitised onboarding, and flexible options. On the occasion of NPS Diwas 2026, on October 1, the Pension Fund Regulatory and Development Authority (PFRDA) and the industry highlight the need for financial security in old age and the evolving pension system and officially introduced a series of initiatives, including NPS Central, Pension Sahayak, NPS Swasthya, and NPS Pension Yatra (Vans), among others. 

Providing macroeconomic context to pension savings, V. Anantha Nageswaran, chief economic advisor to the Government of India, highlighted the need to widen social security coverage. Citing the official labour data for FY 2022-23, he noted that “53.40 per cent of regular wage and salaried employees outside agriculture were not eligible for any social security help”. 

Underscoring the critical role of long-duration retirement assets behind national growth, he said, “Pension savings are among the longest duration and most patient capital that an economy can have”. He emphasised that a country that is to build infrastructure over the next two decades needs exactly that kind of capital.

“Of the Rs 18 trillion that NPS managed at the end of September 2026, about 47 per cent was in Government securities (G-secs), 28 per cent in equity and 21 per cent was in corporate debt,” he said.

Nageswaran added that the task of policy is to make the choice safe, easy and rewarding for every Indian, irrespective of their income, so that the security and dignity of old age are broadly shared. 

Stressing on disciplined retirement planning as an essential behavioural choice, he added, “A corpus at 60 years of age is only half the joy. The other half is converting it into a steady income that lasts for as long as the person lives.”   

“While short-term trading may be exciting, it is the long-term savings in long-duration assets that provides for the family’s health and well-being when he or she stops earning,” he said.

Building on the national policy landscape, Sanjay Lohiya, secretary, Department of Financial Services (DFS), highlighted structural advancement in the pension system. He said, “NPS is one of the biggest financial sector reforms the Government of India has done in the last two or three decades.” 

Emphasising the immense responsibility of the institutional authorities, including PFRDA and the pension fund managers, he added, “It’s one thing to manage a debt fund or a mutual fund and another thing to manage a pension fund. These people are handing over their life’s savings and future to you. So I just would like to request all the pension fund managers to keep in mind it should not be treated as just another investment scheme.” He said it puts a lot of responsibility on the PFRDA and the people who oversee these funds to maintain the trust people have put in them.

He also pointed out that while the scheme offers flexibility, many subscribers don’t utilise it. “Most of the people are not used to doing it very frequently,” he said.  He added that people need to be made aware of making regular contributions and reviewing their investments.  

S. Ramann, chairperson, PFRDA said that non-government subscribers grew by 23 per cent over one year. He shared notable data, “NPS alone manages about 5 per cent of India’s gross domestic product”, and also shared the growth in NPS subscribers. “For the last 12 months, the Atal Pension Yojana saw its best year with a record enrolment of 13.50 million (1.35 crore) people, and the most important 55 per cent of them are women." 

He said: “A pension system succeeds not when accounts are opened but when a required person’s services are served with a regular and reliable income.” He added that there is a need to convert savings into a reliable post-retirement income while providing subscribers with financial security in old age.