Association of NPS Intermediaries Launched to Boost Pension Ecosystem in India

The Pension Fund Regulatory and Development Authority (PFRDA) officially launched the Association of NPS Intermediaries (ANI) on December 21, 2024, aiming to unify stakeholders in the National Pension System (NPS) ecosystem. ANI seeks to promote NPS as a reliable retirement planning tool, enhance subscriber welfare, and foster collaboration to improve the pension framework in India.

Unifying Key Stakeholders

The newly formed ANI brings together a diverse set of players in the NPS ecosystem, including pension fund managers, central record-keeping agencies, points of presence (PoPs), and other intermediaries. By consolidating efforts, ANI aims to address common challenges, represent collective interests, and promote the NPS as a trusted and tax-efficient retirement product.

Rising Need for Pension Planning

Highlighting the importance of early retirement planning, Mohanty noted the country’s changing demographics and urbanisation trends. Mohanty adds “The number of senior citizens is projected to grow from 14 crores in 2021 to 17 crore by 2026 and further to 20 crore by 2031.”

The ANI launch comes at a time when India’s pension landscape is witnessing robust growth. In FY23, the NPS’s assets under management (AUM) stood at ₹8.7 lakh crore, up from ₹7.1 lakh crore the previous year. By FY24, AUM had surged to ₹11.4 lakh crore, reflecting growing confidence in NPS as a reliable retirement product.

Key Objectives of ANI

ANI is tasked with several objectives to support the pension ecosystem, including:

• Representing intermediaries’ interests: Addressing shared challenges and advocating for collective goals.
• Promoting NPS: Positioning it as a flexible and tax-efficient retirement planning tool.
• Ensuring subscriber welfare: Streamlining processes to offer a seamless and transparent experience.
• Collaborating with policymakers: Refining the NPS framework to meet evolving needs.

Recent Developments in NPS

During the launch, it was noted that the NPS has a subscriber base of 8 crore, with combined assets under management (AUM) of over ₹13.8 lakh crore, including the Atal Pension Yojana (APY).

The PFRDA also highlighted the introduction of the Vatsalya Scheme, announced in Budget 2024, which allows parents to create a long-term corpus for their minor children.

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