Pension fund regulator PFRDA on Friday said National Pension System – a flagship defined contribution retirement savings scheme of the government – has registered about 1.03 lakh members in its subscriber base in April-June quarter. During the period, nearly 1.03 lakh individual subscribers from the private sector and 206 corporates were enrolled, Pension Fund Regulatory and Development Authority (PFRDA) said in a release.
“While financial planning often took a backseat in an individual’s life, this pandemic has brought it to the forefront, creating awareness for financial security at such testing times. “During this pandemic, a growing realisation for both corporates and individuals has emerged that retirement planning is not a mere saving or tax benefit choice,” PFRDA chairman Supratim Bandyopadhyay said.
Among the 1,02,975 subscribers registered, 43,000 have routed their subscription through their employer/ corporate, while the rest have voluntarily enrolled in the scheme, the release said. After COVID-19 outbreak, employers have adopted or are willing to adopt deeper measures to ensure adequate support to employees in terms of their financial well-being, it added.
As per a recent survey of Willis Towers Watson, over 20 per cent of employers in the private sector aim to educate employees on retirement adequacy and available savings options, while some companies are focusing on employees approaching retirement by providing independent and unbiased financial advice.
Additionally, about 30 per cent of employers are looking to address the impact of the pandemic on employees’ financial and emotional wellbeing due to stress and concerns related to economic conditions and job security. As on April 30, 2020, the total number of subscribers under National Pension System (NPS) and Atal Pension Yojana had crossed 3.46 crore and the asset under management (AUM) has grown to Rs 4,33,555 crore.
More than 68 lakh government employees have been enrolled under NPS and 22.60 lakh subscribers are from the private sector, with 7,616 entities registered as corporate. PFRDA is the statutory authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the NPS and pension schemes.