The National Pension System or NPS added more than one lakh private-sector subscriptions in the quarter ended June 30. Among the 1,02,975 private-sector subscribers registered during the period, 43,000 routed their subscription through their employers, while the rest enrolled to the pension scheme voluntarily, according to a statement by the Finance Ministry released on Friday. Corporate enrolments in the April-June period stood at 206, and more than 60,000 enrolments were under the all-citizen model of the government-run pension scheme, according to the statement.
The National Pension System subscriber base registered growth of 30 per cent in the first quarter of current financial year, taking the total corporate subscribers in the age group of 18-65 years to 10.13 lakh. (Also Read: National Pension System Subscriptions Rise 30% In April-June)
The government said “employers have adopted or are willing to adopt deeper measures to ensure adequate support to employees in terms of their financial well-being” since the onset of the coronavirus pandemic.
“NPS has been a success among corporate employees. While financial planning often took a backseat in an individual’s life, this pandemic has brought it to the forefront, creating awareness for financial security at such testing times,” said Supratim Bandyopadhyay, chairman of the Pension Fund Regulatory and Development Authority (PFRDA).
“During this pandemic, a growing realisation for both corporates and individuals has emerged that retirement planning is not a mere saving or tax benefit choice. The role played by private corporates to take charge of educating the employees about the benefits of NPS is highly appreciable, resulting in an interesting quarter for the pension sector regulator,” he said.
(Also Read: All You Need To Know About National Pension System)
Citing the findings of a survey conducted by Willis Towers Watson recently, more than 20 per cent of private-sector employers aim to educate employees on retirement adequacy and available savings options, while some companies are focusing on employees approaching retirement by providing independent, unbiased financial advice.
Also, about 30 per cent of employers are looking to address the impact of the pandemic on employees’ financial and emotional well-being due to stress and concerns related to economic conditions and job security, according to the survey.