India’s National Pension System (NPS) is getting a big boost from industry leaders, who praise the latest reforms by the Pension Fund Regulatory and Development Authority (PFRDA). These changes aim to make retirement savings more accessible and appealing to more people across the country.
The excitement kicked off on NPS Diwas, which lines up with the International Day for Older Persons. That’s when PFRDA officially rolled out the Multiple Scheme Framework (MSF). This new setup lets pension funds design their own schemes, giving subscribers more choices and flexibility in how they save for the future.
Sumit Shukla, CEO of Axis Pension Fund, called it a “big day” for NPS. Speaking to , he said, “Today is NPS Diwas, and we’re launching this MSF scheme. It allows all pension funds to create their own schemes. As Axis, we’re introducing a new one for subscribers. This is the first time we’ve had this freedom, and it will deliver real value to customers.”
Shukla highlighted a key feature: the new scheme allows up to 100% investment in equities, but with a 15-year lock-in period. “It gives subscribers more flexibility and long-term benefits,” he explained. He added that the pension sector is ready for major growth. “New products like these will help us reach more customers and build a bigger industry.”
He also pointed out opportunities for tailored products, like options for children, women, and gig workers. Shukla commended PFRDA for transforming the landscape but called for better tax incentives. “If we get up to 50,000 rupees in tax benefits under the new tax regime, that would be fantastic,” he said.
Sriram Iyer, MD and CEO of HDFC Pension, shared the enthusiasm. As the largest private sector pension fund manager and top corporate NPS provider, HDFC is eager to launch fresh schemes. “This MSF launch is a game-changer for the sector,” Iyer told . He noted that PFRDA’s forward-thinking moves will broaden NPS’s reach to more Indians.
HDFC plans to focus on two main product categories at first, with more to come. They’re even developing a scheme with full equity exposure, ideal for younger folks or those comfortable with higher risks. “We’re excited to expand NPS and make retirement planning easier for everyone,” Iyer said.
With these reforms, experts see NPS evolving into a more robust and inclusive system. It promises Indians better options for a secure retirement, helping more people build a worry-free future.
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