Economic Survey 2022: NPS' 'All Citizen Model’ registers highest growth of 51.29%

According to the Economic Survey 2022 contributions made by individuals to the National Pension System’s (NPS) 'All Citizen Model' registered the highest growth of 51.29 per cent followed by corporate sector at 42.13 per cent, Atal Pension Yojana (APY) at 38.78 per cent, state government at 28.9 per cent and Central government at 22.04 per cent.

The subscriber base under the popular pensions schemes of Pension Fund Regulatory and Development Authority (PFRDA), also increased by 24 per cent to 463 lakh as on September 2021. The Assets under Management (AUM) grew by 34.8 per cent to 6.67 lakh crore till September 2021 compared to Rs 4.95 lakh crore in the corresponding period previous year. The two pension schemes- National Pension System (NPS) and Atal Pension Yojana (APY) - are administered by the PFRDA.

The Economic Survey 2021-2022, which was tabled in the Lok Sabha today by Finance Minister Nirmala Sitharaman states, “The total number of subscribers under New Pension Scheme (NPS) and Atal Pension Yojana (APY) increased from 374.32 lakh as on September 2020 to 463 lakh as on September 2021, recording a growth of 23.7 per cent over the year. The overall contribution under NPS grew by more than 29 per cent during the period September 2020 - September 2021.”

NPS is a low cost, tax efficient retirement savings account launched by Government of India. One needs to contribute regularly so that one has sufficient corpus by the retirement age of 60. It offers you two investment options—active choice or auto choice. After reaching 60 you can withdraw 60 per cent money and from the rest 40% you have to buy annuity.

Atal Pension Yojana (APY) is a pension scheme which offers minimum guaranteed pension of Rs. 1,000 to Rs 5,000 per month after attaining the age of 60 years depending on the contributions by the subscribers for their chosen pension amount.

As per the survey, as on 12th October 2021, contribution of Rs 16,109 crore was collected in the Atal Pension Yojana (APY) scheme from more than 3.45 crore enrolments.

The APY scheme is being distributed through more than 250 active APY service providers including all banks and post offices.

“The age profile of the subscribers in the APY scheme suggests increasing enrolments at younger age. As on September 2021, more than 43 per cent subscribers were between 18 and 25 years, as compared to 29 per cent as on March 2016. Further, more people are now opting for a pension amount of Rs 1000 per month. As on September 2021, around 78 per cent subscribers have opted for Rs 1000 per month pension amount, as compared to 38 per cent subscribers as on March 2016. Further, as on September 2021 the share of subscribers opting for Rs 2000/Rs 3000/Rs 4000 per month pension is 8 per cent, while 14 per cent opt for Rs 5000 per month pension,” states the survey.