The National Pension System (NPS) has crossed a major milestone in FY2024-25. More than 12 lakh private sector individuals joined the scheme this year, bringing the total number of subscribers to over 165 lakh by March 2025. This shows a rising trend in retirement planning among private sector workers.
A key reason behind this growth is the launch of NPS Vatsalya in September 2024. This scheme is specially made for children and has already enrolled over 1 lakh young members. It highlights how families are now planning for retirement from an early age.
The Atal Pension Yojana (APY), which is now 10 years old, also saw a rise in popularity. It added 1.17 crore new subscribers in FY25, crossing a total of 7.6 crore members by March 2025. This is the third year in a row that APY has added more than 1 crore subscribers, showing its strong and steady appeal.
APY offers guaranteed monthly pensions of ₹1,000 to ₹5,000 from age 60. If the subscriber dies, their spouse continues to receive the pension. After both pass away, the saved amount is given to their nominee. This makes APY a safe and secure choice for families. The scheme also gives a strong return of 9.11% annually.
To make APY easier to join, the Pension Fund Regulatory and Development Authority (PFRDA) introduced several reforms. People can now choose between three Central Recordkeeping Agencies (CRAs) and use auto-debit from bank or post-office accounts. PFRDA also ran 32 awareness programs in partnership with banks to train staff and inform the public.
The NPS and APY continue to grow with strong enrollments and trust from the public. These pension schemes are becoming an essential part of financial security and retirement planning in India.
Read more on: Can You Plan Early Retirement with the National Pension Scheme (NPS)?
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Published on: Apr 23, 2025, 1:06 PM IST
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