Pension Planning: At present, India’s pension market is very small and is only 3 per cent of the GDP, but by 2030 it is estimated to increase to Rs 118 lakh crore.

Pension Plan: People in the country are becoming aware of retirement planning. This can be estimated from the fact that India’s pension assets under management are expected to increase to Rs 118 lakh crore by 2030 and the share of the National Pension System (NPS) can be close to 25 per cent in this. This information has come to light through a report.

Tremendous growth is being seen in NPS private sector AUM. And it has increased to Rs 2,78,102 crore with a jump of 227 per cent in the last five years, which was earlier Rs 84,814 crore. The report of DSP Pension and Fund Managers states that India’s elderly population is expected to be 2.5 times by 2050. Also, after retirement, the life expectancy rate will increase by an average of 20 years.

India’s pension market is currently quite small and accounts for only 3 per cent of GDP. The retirement savings gap is expected to grow by 10 per cent annually, potentially reaching around $96 trillion by 2050. The report said that Indian retail investors are increasingly moving away from traditional savings methods to market-linked investments. The reliance on cash and bank deposits has fallen from 62 per cent to 44 per cent over the last decade, which shows this change. New NPS registrations have seen strong growth between FY 2020 and 2024, with male subscribers increasing by 65 per cent and female subscribers by 119 per cent.

NPS Vatsalya, introduced by the government in September 2024, has received a good response, attracting over 86,000 subscribers. The report further said that the AUM of the NPS private sector is estimated to exceed Rs 9,12,000 crore within the next five years with over 1.5 crore subscribers. Rahul Bhagat, CEO, of DSP Pension Fund Managers, said, “We believe that India’s pension market is on the path of rapid growth and with the right policies and increasing awareness, it has the potential to unlock significant value for its citizens.”