KOCHI: Kerala has emerged as a frontrunner in the adoption of the National Pension System (NPS). According to statistics released by the Pension Fund Regulatory and Development Authority (PFRDA), the state has shown impressive growth in NPS adoption, particularly among corporate subscribers under the age of 30.
With a participation rate of 17%, Kerala surpasses the national average of 14% in this age group. Moreover, the state has registered an impressive 3,600 subscribers under the NPS Vatsalya scheme, which was launched in September.
As of November 2024, the total Assets Under Management (AUM) for NPS and the Atal Pension Yojana stands at a staggering Rs 13.4 lakh crore, with a subscriber base of over 7.9 crore across the country. "Kerala has shown encouraging growth in its contribution to NPS adoption," said Deepak Mohanty, Chairperson of PFRDA.
"The state accounts for 3.38% of private sector subscribers under the NPS, showing increasing awareness of the scheme's benefits. More than 216 corporates from Kerala are registered under NPS, out of a total of 18,152 corporates nationwide that have adopted the scheme for their employees," said Deepak. Providing more statistics on NPS subscribers in Kerala, he added, "The number of private sector subscribers under NPS till October 31, 2024, in Kochi is 35,238. In the state's commercial capital, the number of those registered with the NPS scheme in the corporate sector is 14,988, while the all-citizen category has 20,250 people registered."
Compared to the national statistics of 61,09,553, the number of private sector subscribers under NPS till October 31, 2024, in Kerala is 2,06,396.
Speaking about the importance of NPS, the PFRDA chairperson said, "The NPS is a robust, transparent, and professionally managed framework designed to help individuals build a secure retirement corpus. With its tax benefits, flexible investment options, and competitive returns, NPS has become a preferred choice for both individuals and corporates seeking long-term financial security and retirement planning solutions."
Regarding the challenges and opportunities, he said, "India’s demographic trends, characterized by a rapidly ageing population and increasing life expectancy, emphasize the critical need for financial security post-retirement. However, only 5.7% of Indian household assets are allocated to provident and pension funds, reflecting a significant gap in retirement preparedness. The rise of the gig economy and the unorganized sector, where 93% of the workforce lacks statutory social security, further amplifies the relevance of NPS."