NPS: People are getting attracted towards retirement planning, pension AUM will be Rs 118 lakh crore by 2030

Pension Planning: At present, India's pension market is very small and is only 3 percent of GDP, but it is estimated to increase to Rs 118 lakh crore by 2030.

Pension Plan: People are becoming aware of retirement planning in the country. This can be estimated from the fact that India's pension assets under management are estimated to increase to Rs 118 lakh crore by 2030, and the share of the National Pension System (NPS) in this can be close to 25 percent. This information has come to light through a report.

NPS private sector AUM is witnessing tremendous growth. In the last five years, it has increased to Rs 2,78,102 crore with a jump of 227 percent, which was earlier Rs 84,814 crore. DSP Pension And Fund Managers report states that India's elderly population is expected to increase by 2.5 times by 2050. Also, the life expectancy rate after retirement will increase by an average of 20 years.

At present, India's pension market is quite small and is only 3 percent of GDP. The retirement savings gap is expected to grow by 10 percent annually, potentially reaching around $96 trillion by 2050. The report said that Indian retail investors are rapidly moving away from traditional savings methods to market-linked investments. Over the past decade, dependence on cash and bank deposits has fallen from 62 percent to 44 percent, which shows this change. Strong growth has been seen in new NPS registrations between FY 2020 and 2024, with male subscribers increasing by 65 percent and female subscribers by 119 percent.

NPS Vatsalya, introduced by the government in September 2024, has received a good response, attracting over 86,000 subscribers. The report further said that the AUM of the NPS private sector is estimated to exceed Rs 9,12,000 crore with over 1.5 crore subscribers within the next five years. Rahul Bhagat, CEO, of DSP Pension Fund Managers, said, "We believe that India's pension market is on the path of rapid growth, and with the right policies and increasing awareness, it has the potential to unlock significant value for its citizens. "