Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Interesting Articles

| More

NPS Growing at Decent Pace, Performed Well Even During Pandemic Period: PFRDA Chairman

Posted On: 2021-02-19 03:02:06 (Time Zone: Arizona, USA)


Pension Fund Regulatory and Development Authority (PFRDA) in collaboration with Confederation of Indian Industry (Noida chapter) organized a 'Webinar on National Pension System for Corporates' with the theme of 'Importance of Retirement Planning - Role of NPS.' Around 40 corporates were present during the webinar. Shri Supratim Bandyopadhyay, Chairman, Pension Fund Regulatory and Development Authority (PFRDA) was the keynote speaker of the webinar.

Speaking at the webinar, Shri Bandyopadhyay said, "By 2050, one out of five people will be of more than 60 years old. Not only for the reason that the population in India is aging fast, planning early for retirement is very much required."

He noted, "It is seen that the person who retires at the age of 60 years lives for another 18 to 20 years, so unless you are financially protected it will become difficult to lead a decent lifestyle post retirement."

National Pension System ensures right kind of retirement planning as there is an inbuilt mandatory requirement of annuity purchase with 40% of the accumulated corpus. NPS is the only product apart from a few insurance products which ensures a regular flow of income, the PFRDA Chairman observed.

Since total pension assets in India is only 14% of GDP compared to other countries where it is 80-100%, there is a lot to catch up and with financial literacy at 24%, nudging and mentoring is also required on the part of corporates for convincing their employees to join NPS. As of now, average percentage of corporate employees joining NPS is only two per cent (2%).

As far as tax benefit is concerned, NPS provides Rs 50,000 additional tax deduction benefit under section 80CCD (1B) over and above Rs 1.5 lakh provided under section 80C of the Income Tax Act, 1961.

NPS is growing at a decent pace, and there was 18% plus growth in the customer base even during the pandemic period, and 22-23% increase has been seen so far this year, he said adding "the growth in pension assets has been 35% and we are hopeful of achieving the target of Rs 6 lakh crore AUM by 31st March, 2021."

Though NPS is a market-linked product and as it is well managed, returns are very good, be it equity, Government Securities or Debt and the CAGR is 10%+ since inception (10 years period). If a person plans for long term, he will definitely get a good return, the Chairman added.

The total asset under management under NPS & APY amounts to over Rs 5 lakh 66 thousand crores. So far 8,300 corporates have registered with PFRDA, from which more than 11 lakh corporate employees are on board in NPS.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Other Headlines:

Tips to save Income tax in FY 2021-22

The Yamuna Syndicate Limited acquires 20,000 shares of ISGEC Heavy Engineering Ltd from open market

Decoding: Pledging of shares and upfront margins in the cash market!

SIDBI joins hands with Govt. of Rajasthan for the development of MSME ecosystem in the State

Are promoters using rights issue to increase their stake in the company?

All you want to know about Rights Entitlement

45% of the customers have taken moratorium PAN India; more observed in the northern region of the country: Finway

DISCOM dues balloon to ₹1.199 trillion

TNPL recommends dividend of Rs. 6 - Dividend Yield @ 5.45%

HUDCO - Rs. 2.35 dividend recommended - Dividend Yield @ 7.01%

PTC India Ltd - Rs. 5.50 dividend recommended - Dividend Yield @ 11.46%

PNB Gilts Ltd - Rs. 3 dividend recommended - Dividend Yield @ 8.57%

How to apply for Rights Issue of Arvind Fashions Limited?

How to apply for Rights Issue of Aditya Birla Fashion and Retail Limited?

An insight on Aarti Surfactants Limited

Covid-19 and its impact on businesses

Nifty Gained 8% in the June Series, Bank Nifty Surged 12%-Highest Since March 19 - HDFC Securities

IMF Growth Revision for India - Acuité Ratings & Research

Co-operative Banks - RBI Supervision - Acuité Ratings & Research

HDFC Securities views on relaxations announced by SEBI

India can reduce China trade deficit by over $8 billion in FY21-22 - Acuité Ratings & Research

How can investors preserve their wealth during times of crisis

JM Financial Yield Enhancer (Distressed Opportunity) Fund I raises Rs.160 crore in its first close

Samco Securities launches BTPT - Buy Today, Pay In Two days for Investors Buying Stocks

No data breach of BHIM app: Report

India's sovereign rating downgrade by Moody's - Acuité Ratings & Research

Banking Sector Credit Trends - Unusual trends - HDFC Securities

Rollover Report for May - June 2020: Angel Broking

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q4 GDP

Mr. Dhiraj Relli views on GDP Numbers - HDFC Securities

Banking Sector Update - NIM compression on the cards - HDFC Securities

May series ends with a bang: Angel Broking

May 2020 F&O Series Expiry - Mr. Nandish Shah, Technical Research Analyst, HDFC Securities

Views on Impact of Locusts Attack on Agriculture - Acuité Ratings & Research

ICAI establishes Center for Audit Quality

Bharti Telecom raised over Rs. 8433 crores through Accelerated Book-build offering of equity shares of Bharti Airtel

SATYA MicroCapital raises INR 105 crore equity funding from Japan-based Gojo & Company Inc.

Mr. Rajnish Kumar, Chairman, SBI & IBA on the announcements made by RBI today

Views of Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on RBI announcement

Views of Mr. George Alexander Muthoot, MD, Muthoot Finance on RBI announcement today

Views of Ms. Anagha Deodhar - Economist, ICICI Securities on the RBI announcement today

Views on RBI Policy announcement today - Federal Bank

RBI Monetary Policy (May 2020) by Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Religare Finvest Ltd. on today's monetary policy by RBI

RBI monetary policy announcement - Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

RBI's proactive measure will help revive economy: Dr.Niranjan Hiranandani

Mr. Dhiraj Relli views on today's announcement made by RBI

Views of Mr. R K Gurumurthy, Head - Treasury, Lakshmi Vilas Bank on the RBI announcement today

Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities on RBI announcement

Suman Chowdhury, Chief Analytical Officer at Acuité Ratings & Research, on today's RBI announcement


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020