NPS adds over 1 lakh new private sector subscriptions in Q1FY21
The outbreak of Covid-19 has led employers to do more in order to support employees who are facing the crisis in terms of finances
PremiumThe National Pension System, a pension scheme of Government of India has revealed subscription numbers of the scheme for the first quarter of 2020-21.
According to a PIB report, the scheme has registered a growth of 30% during the first quarter. This growth includes around 1.03 lakh individual subscribers from the private sector and 206 corporates. With the latest addition in numbers, the total has gone up to the 10.13 lakh corporate subscribers who are in between the age of 18 to 65 years.
Among the 1,02,975 subscribers registered, 43,000 have routed their subscription through their employer/ corporate while the rest have voluntarily enrolled in the scheme.
The outbreak of Covid-19 has led employers to do more in order to support employees who are facing the crisis in terms of finances.
According to a recent survey of Willis Towers Watson, over 20% of employers in the private sector aim to educate employees on retirement adequacy and available savings options, while some companies are focusing on employees approaching retirement by providing independent, unbiased financial advice.
The report also claims that about 30% of employers are looking to address the impact of the pandemic on employees’ financial and emotional well-being due to stress and concerns related to economic conditions and job security. As retirement benefits are unlikely to be reduced despite short-term actions by employers, employees may be looking for more flexibility concerning contribution schedules, withdrawals and timing of lump-sum payments, etc.
Shri Supratim Bandyopadhyay, Chairman, Pension Fund Regulatory and Development Authority (PFRDA), said: “The National Pension Scheme (NPS) has been a success amongst the corporate employees. While financial planning often took a backseat in an individual’s life, this pandemic has brought it to the forefront, creating awareness for financial security at such testing times. During this pandemic, a growing realisation for both corporates and individuals has emerged that retirement planning is not a mere saving or tax benefit choice. The role played by private corporates to take charge of educating the employees about the benefits of NPS is highly appreciable, resulting in an interesting quarter for the pension sector regulator. We have also adopted various proactive measures for ensuring uninterrupted services to the subscribers in this period of unexpected crisis"
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