PFRDA Organizes NPS Diwas Conference on ‘Securing Retirement: Transforming India’s Pension Landscape’
Experts Discuss the Future of Pension Systems in a Digitally Evolving India
New Delhi: 1st October is observed as “National Pension System Diwas (NPS Diwas)” to highlight the importance of pension and retirement planning. This day aligns with the International Day of Older Persons, a day dedicated to honoring senior citizens globally. By celebrating NPS Diwas, PFRDA aims to foster a culture of financial self-sufficiency among Indian citizens, ensuring that they lead dignified and independent lives after retirement.
As one of the initiatives, the Pension Fund Regulatory & Development Authority (PFRDA) organized the NPS Diwas Conference on October 1, 2024, at Hotel The Ashok, Chanakyapuri, New Delhi. The conference, themed ‘Securing Retirement: Transforming India’s Pension Landscape,’ brought together eminent policymakers, financial experts, and industry leaders to discuss the future of pensions in India, especially in the context of evolving labour market dynamics and digitalization.
The event commenced with a welcome address by Ms. Mamta Shankar, Whole Time Member (Economics), PFRDA, who set the tone for the conference by emphasizing the critical role that pensions play in securing the financial well-being of India’s ageing population and various initiatives undertaken by the Authority recently. Dr. Deepak Mohanty, Chairperson, PFRDA, delivered the inaugural address, highlighting the ongoing transformation in India’s pension system and the need to build more inclusive, resilient structures that can address the needs of all citizens, particularly in the context of labour market mobility and the gig economy. He also stressed upon the importance of integrating technological advancements into pension frameworks, making pension systems more accessible, efficient, and secure in the digital age.
A special address was delivered by Dr. V. Anantha Nageswaran, Chief Economic Advisor to the Government of India, who stressed the importance of saving for pension in the early years of life. Despite the impressive gains made by the pension sector, only about 5 per cent of the total population is covered under the NPS and Atal Pension Yojana (APY) combined .He further emphasized that any efficient pension system should be sustainable and scalable along with a balance Asset Liability framework. This was followed by a keynote address from Dr. V K Paul, Member, NITI Aayog, stated that status of elderly are not homogenous across states. The perspective of money – based on instant gratification in young needs to be changed. Further gender diversity of elderly is more inclined towards women and that widowed women are at 54%. In Viksit Bharat 2047 , life expectancy would increase to 85 years which will pose further challenges. He outlined the role of creating awareness of NPS and APY among the people, specially reaching out to people in rural areas and for this, the banks may play an important role. He emphasized that policy makers to consider the aspect of health, Socio Economic Welfare and Digital inclusion while framing the policy.
During the conference, Hindi edition of the Pension Bulletin was released. The bulletin contains a variety of insightful articles covering different aspects of pension planning and updates from the pension sector.
Additionally, as part of PFRDA’s continuous efforts to expand investment options under the NPS, PFRDA introduced the Balanced Life Cycle Fund (BLC). This new life cycle fund focuses on growth assets, particularly equity investments, providing more flexibility and potential for higher returns for NPS subscribers. The tapering of equity allocation under BLC is similar to existing LC 50 the equity is capped at 50% but the equity tapering starts at the age of 45 instead of 35.
Following these speeches, two panel discussions were held. The first, on Reimagining Pensions in the Digital Era, explored how digital technologies are redefining pension systems and making them more adaptable to the needs of a diverse and mobile workforce. The second panel discussion focused on Evolving Labour Market Dynamics: Role of Pensions, examining how the rise of the gig economy and labor mobility are creating both opportunities and challenges for policymakers.
The conference concluded with a consensus on the need for policy initiatives that integrate digital innovation with inclusive growth strategies, ensuring that pension systems in India remain robust, efficient, and supportive of the financial security of an ageing workforce. Discussions emphasized the importance of creating gender-equitable policies and recognizing the rural sector’s potential contribution to value addition.
The NPS Diwas Conference reaffirmed PFRDA’s commitment to shaping a secure and equitable pension landscape that addresses the needs of all segments of the Indian population. The Conference was attended by more than 250 participants from the industry.