The combined assets under management (AUM) of the National Pension System (NPS) and Atal Pension Yojana (APY) have crossed the ₹16 lakh crore mark today. Marking an important milestone in India’s pension journey, the subscriber base has also widened to surpass 9 crore.

The Ministry of Finance says the Pension Fund Regulatory and Development Authority (PFRDA) has introduced key initiatives to strengthen the NPS and widen pension inclusion, including the multiple scheme framework (MSF) effective from October 1, 2025, which offers greater investment choice.

"Adding to it is the NPS Platform Workers Model covering gig workers and a consultation paper on NPS Overhaul proposing graded payouts and flexible annuity options to enhance retirement adequacy. Further, the targeted outreach drive aims at expanding coverage among farmers, MSME workers, SHG members and other informal sector participants. This reflects PFRDA’s continued focus on inclusion, flexibility, and long-term financial security," says the ministry.

What is NPS

The NPS has been designed for the welfare of the subscribers. There are a number of benefits available to the employees under NPS. The system is managed through an unbundled architecture involving intermediaries appointed by the PFRDA viz., pension funds, custodian, central record keeping and accounting agency, National Pension System Trust, trustee bank, points of presence and Annuity service providers. It is prudently regulated by PFRDA, which is a statutory regulatory body established to promote old-age income security and to protect the interests of subscribers of NPS.

Subscribers can withdraw up to 25% of their own contributions before attaining the age of superannuation. Transparency and portability is ensured through online access to the pension account by the NPS subscribers, across all geographical locations and portability of employment.

What is Atal Pension Yojana

The government launched the Atal Pension Yojana (APY) on May 9, 2015, and was operationalised from June 1, 2015. The scheme was designed to encourage voluntary savings for retirement by offering defined pension benefits, linked to the age of joining and the amount of contribution. Targeted primarily at poor and underprivileged workers in the informal sector, the scheme has emerged as one of the most inclusive and accessible social security initiatives in India. The APY is characterised by features like a target group aimed at workers in the unorganised sector, who often lack formal pension coverage, a defined pension benefit, which provides subscribers with a fixed monthly pension at the age of 60 years, based on their contributions. Pension slabs include ₹1,000, ₹2,000, ₹3,000, ₹4,000, and ₹5,000 per month.