NPS and Atal Pension Yojana see record subscriber growth in 2024-25

The National Pension System (NPS) has marked a significant milestone by adding over 12 lakh new private sector subscribers during the financial year 2024-25, raising the total subscriber count to more than 165 lakh by March 2025. This achievement underscores the growing appeal of NPS as a viable retirement planning option among private individuals. Notably, NPS Vatsalya, a scheme introduced for minors in September 2024, has attracted more than one lakh subscribers. 

In parallel, the Atal Pension Yojana (APY) has also exhibited robust expansion, registering 11.7 million new enrollments in the same period. With this surge, APY's total gross enrollments have now surpassed 76 million by the end of March 2025. The Pension Fund Regulatory and Development Authority (PFRDA) reports that this marks the third consecutive year where APY has consistently added more than 10 million new subscribers annually, reflecting sustained interest in government-backed pension schemes. 

The Atal Pension Yojana (APY), now celebrating its tenth year, offers subscribers a guaranteed monthly pension ranging from Rs 1,000 to Rs 5,000 starting at age 60. With APY, subscribers can rest assured knowing they will receive a minimum pension of Rs 1,000 to Rs 5,000 per month for life from the age of 60, based on their contributions. In the unfortunate event of a subscriber's passing, their spouse will continue to receive the same pension amount. Furthermore, upon the demise of both the subscriber and spouse, the accumulated pension wealth until the subscriber reaches 60 years old will be returned to the nominee.

The financial performance of these schemes has been commendable, with the combined Assets Under Management (AUM) for NPS and APY growing by 23 percent to Rs 14.43 lakh crore by the end of March 2025. This growth trajectory highlights the schemes' increasing role in financial planning for retirement. Since its inception, APY has delivered an annual return of 9.11%, further solidifying its position as a reliable financial product for retirement savings. 

The demographic profile of new subscribers indicates a significant gender balance, with women comprising about 55% of the new enrollments this year. This increase suggests a shift towards greater financial inclusion and awareness among women. Last year, PFRDA expanded the process of opening APY accounts, allowing subscribers to choose from three Central Recordkeeping Agencies (CRAs)—CAMS, KFin, and Protean eGov Technologies—for account initiation and maintenance. Contributions to APY are collected through an auto-debit system from the subscribers' bank accounts or post office savings accounts. 

To enhance awareness and accessibility, PFRDA conducted 32 APY Outreach programs across India during 2024-25. These initiatives, conducted in tandem with State Level Bankers’ Committees (SLBCs) and Lead District Managers (LDMs), included training sessions for bank officials and public awareness campaigns across various media platforms. Such efforts contribute to the sustained growth and popularity of the APY, which assures subscribers a lifelong minimum guaranteed pension of Rs. 1,000 to Rs. 5,000 per month from the age of 60, with benefits extending to the subscriber's spouse and nominee after their demise.