National Pension System: NPS subscriber base logs 30 pct growth in Q1FY21
National Pension System (NPS) subscriber base in the first quarter of FY2020-21 has registered 30 per cent growth whereby 1.03 lakh individual subscribers from the private sector.
National Pension System (NPS) subscriber base in the first quarter of FY2020-21 has registered 30 per cent growth whereby 1.03 lakh individual subscribers from the private sector and 206 corporates were enrolled during the 1st quarter, resulting in a total of 10.13 lac corporate subscribers in the age group of 18 to 65 years. Among the 1,02,975 subscribers registered, 43,000 have routed their subscription through their employer or corporate while the rest have voluntarily enrolled in the scheme.
Speaking on the achievement Supratim Bandyopadhyay, Chairman at Pension Fund Regulatory and Development Authority (PFRDA), which administers National Pension System (NPS), said, “The National Pension Scheme (NPS) has been a success amongst the corporate employees. 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. The role played by private corporates to take charge of educating the employees about the benefits of NPS is highly appreciable, resulting in an interesting quarter for the pension sector regulator. We have also adopted various proactive measures for ensuring uninterrupted services to the subscribers in this period of unexpected crisis.”
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After the onset of COVID-19, employers have adopted or are willing to adopt deeper measures to ensure adequate support to employees in terms of their financial well-being. As per a recent survey of Willis Towers Watson, over 20 percent 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, unbiased financial advice. Additionally, about 30 percent 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 retirement benefits are unlikely to be reduced despite short-term actions by employers, employees may be looking for more flexibility concerning contribution schedules, withdrawals and timing of lump-sum payments, etc.
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