On Monday, PFRDA Chairman Supratim Bandyopadhyay noted that the NPS pension plan has provided good returns for subscribers over the last 12 years, but that one must start early to profit from the scheme’s flexibility.
“Despite some credit events, equity schemes have produced returns of more than 12% over a 12-year period, government securities have provided returns of close to 9.9%, and corporate bonds have provided returns of more than 9.59 percent.” Fortunately, our pension fund assets were generally insulated from post-credit developments.
“At the moment, our total corpus is at around Rs 6.85 trillion.” “The returns have been fairly good,” remarked Bandyopadhyay at the CII Insurance & Pensions Summit, which was themed “Indian Insurance Sector – Riding the Wave of Change.”
According to the chairman of the Pension Fund Regulatory and Development Authority, the National Pension System (NPS) gives a lot of freedom, but one must begin early (PFRDA).
“There is flexibility in that you simply have to spend Rs 1,000 to keep an account open.” You can give as much as you want as long as you follow the PMLA (Prevention of Money Laundering Act) guidelines and can back it up with all of your known sources of income,” he explained.
He noted that much more has to be done to make India a pensioned society, and that the insurance sector regulator Irdai, the Pension Fund Regulatory and Development Authority, and the industry group CII could unite to develop a forum to enhance pension awareness in the country.
PFRDA’s primary pension programmes include the NPS and APY.
Unlike the National Pension System (NPS), which is primarily for government employees, the Atal Pension Yojana (APY) is intended for individuals working in the informal sector.