Due to political reasons, the government is going to implement the Unified Pension Scheme (UPS) in place of the National Pension System (NPS) implemented since 2004, but considering the return rate and the facility of pension in old age, the private sector has now started liking NPS.
In the last financial year 2023-24, 9.12 lakh people from the private sector joined NPS, which is 15 percent more than the previous financial year. At present, 1.54 crore people are connected to NPS, including government and private sector, which includes 94 lakh government (including central and state) and 60 lakh private sector employees. NPS was started for government employees in the year 2004 while for the private sector, NPS was opened after five years in the year 2009.
Pension Fund Regulatory and Development Authority (PFRDA) is also now preparing to connect more and more people in the private sector to NPS so that they can continue to get a good amount as pension after 60 years. In the current financial year 2024-25, PFRDA has set a target to connect 11 lakh private sector employees with NPS.
At present 11 percent people in the country are above 60 years of age and by the year 2050 their share will exceed 21 percent. NPS can be very helpful in providing respectable pension facility to these people.
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