India’s National Pension System (NPS) stands out as a smart, affordable way to plan for retirement, with equity schemes delivering more than 13 percent average annual returns since they started, Finance Minister Nirmala Sitharaman shared at the NPS Diwas conference in New Delhi.
Organized by the Pension Fund Regulatory and Development Authority (PFRDA), the event focused on inclusive pensions and innovative solutions to boost retirement security across India. Sitharaman highlighted how other NPS options perform strongly too—corporate debt and government securities schemes both clock in around 9 percent yearly returns, putting NPS among the world’s top pension products.
These impressive numbers, paired with the system’s low fees, easy portability, and flexible choices, position NPS as a key tool for retirement savings for every Indian, far beyond just government workers. “The strong returns, combined with low costs, make NPS a cornerstone of retirement security,” the minister said.
Launched in 2004 under the NDA government, NPS shifted pensions from a fixed-benefit model to a contribution-based one, helping make the system more sustainable for the long haul. What started as a perk for public sector employees has grown into a go-to retirement option for private workers, self-employed folks, and anyone else looking to build financial stability.
Sitharaman pointed out that NPS runs one of the cheapest pension fund management setups worldwide. Those minimal charges mean more of your money stays invested and grows over time. Plus, it’s fully regulated and transparent, with a design that lets you move seamlessly—whether you’re changing jobs, relocating, or starting your own gig.
Your NPS account sticks with you no matter what. You only need to contribute a minimum of Rs 1,000 per year to keep it active, and monthly payments aren’t required. This setup works perfectly for informal workers and those in the gig economy, giving them real flexibility in retirement planning.
In 2024, the NPS platform got a big upgrade with improved Direct Remittance (D-Remit) features. Now, subscribers get same-day Net Asset Value (NAV) updates for their contributions, so they don’t miss out on market gains from processing delays—especially in rising markets. “This eliminates the risk of losing potential gains due to delays,” Sitharaman noted.
Looking ahead, as India pushes toward becoming a developed nation by 2047 under the Viksit Bharat vision, a solid pension system like NPS plays a vital role. It eases the financial burden on younger family members, ensures seniors age with dignity, and funnels long-term savings into the country’s growth priorities. “Pensions bring security in old age, strengthen families, and support national goals,” the minister added.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
