In a recent interview with the Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Deepak Mohanty, it was revealed that the assets under management (AUM) in pension schemes are expected to surpass Rs 10 lakh crore by September . This blog post will explore the current status of the AUM and the factors contributing to its potential growth, making it a more dynamic and enjoyable read.
Current AUM Figures and Future Projection: As of now, the AUM in pension schemes stands at Rs 9.58 lakh crore, with the National Pension Scheme (NPS) accounting for Rs 9.29 lakh crore and the Atal Pension Yojana (APY) contributing Rs 28,538 crore . The NPS alone has already exceeded 10 lakh subscribers . Chairman Mohanty anticipates that the AUM will cross the milestone of Rs 10 lakh crore in the first half of the current fiscal year . The projected growth is driven by regular contributions from subscribers and various factors such as fund returns and market performance . However, it is important to note that the AUM value is subject to market fluctuations due to its mark-to-market nature .
Factors Influencing AUM Growth: The PFRDA is actively focusing on expanding the subscriber base to achieve the target AUM of Rs 10 lakh crore and beyond. Chairman Mohanty expects the number of subscribers to reach 13 lakh, indicating the growing interest in pension schemes. While the NPS has shown consistent growth in government employee contributions, there is a need to enhance private sector participation . To address this, the PFRDA is actively promoting NPS among corporates and sensitizing trade bodies to facilitate its adoption .
Digital Transformation and APY Expansion: To make the pension scheme enrollment process more accessible and streamlined, the PFRDA is leveraging digital platforms. Initiatives like e-NPS enable individuals to directly subscribe to pension schemes without intermediaries . Furthermore, the Atal Pension Yojana (APY) has demonstrated satisfactory penetration and expansion, with a subscription base of approximately 5.2 crore . Chairman Mohanty emphasized the untapped potential in the age group of 18 to 40, which includes around 25 crore account holders within the Pradhan Mantri Jan Dhan Yojana (PMJDY) framework .
Conclusion: In conclusion, the AUM in pension schemes, including the NPS, APY, and NPS Lite, is expected to surpass Rs 10 lakh crore in the coming months. With an AUM of Rs 9.58 lakh crore already achieved, the growth is driven by contributions from subscribers and factors such as fund performance and market conditions. The PFRDA is actively working on expanding the subscriber base and promoting pension schemes among the private sector and corporates. The digital initiatives, like e-NPS, have simplified the enrolment process, while the APY has witnessed satisfactory penetration. The future outlook for the AUM suggests significant potential for growth, especially among the younger population. As the PFRDA continues its efforts, achieving and surpassing the magical figure of Rs 10 lakh crore seems within reach .