Contributions to different categories of National Pension System (NPS) have risen between 22 percent to 51 percent, reveals the Economic Survey 2021-22.
The contributions made by individuals to the ‘All Citizen Model’ of NPS posted the maximum increase of 51.29 percent in comparison to other NPS schemes.
Following this, the corporate model saw an increase of 42.13 percent in contributions. It was followed by Atal Pension Yojana which posted 38.78 percent rise, state government sector with 28.9 percent rise and central government sector with 22.04 percent rise.
Cumulatively, NPS contributions surged by over 29 percent between September 2020 and September 2021.
The assets under management (AUM) of NPS and APY rose 34.8 percent year-on-year from ₹4.95 trillion on September 30, 2020 to ₹6.67 trillion a year later.
‘All Citizen Model’ that saw the maximum jump in subscriptions invites citizens to voluntarily contribute to the NPS to build their retirement kitty.
One can claim tax deductions of up to ₹1.5 lakh under section 80C and an additional ₹50,000 under section 80CCD (1B). NPS was primarily meant for central government employees when it was introduced in 2004, but was later extended to all Indian citizens in 2009.
Atal Pension Yojana offers a maximum fixed pension of ₹5,000 per month, depending on subscribers’ contributions. As on October 12, 2021, contributions amounting to ₹16,109 crore were accumulated under APY from more than 3.45 crore subscribers.
The Economic Survey 2022 also showed that APY is witnessing a higher number of subscribers signing up at younger age. “As of September 2021, more than 43 percent subscribers were between 18 and 25 years, as compared to 29 percent as of March 2016,” the survey stated.
The state which has the highest number of APY accounts is Uttar Pradesh with 51.9 lakh, followed by Bihar (32.7 lakh), West Bengal (27.6 lakh) and Maharashtra (26.8 lakh).