The Growth of NPS in 2024-25: Subscribers Expand, AUM Increases

Introduction

The National Pension System (NPS) is a cornerstone of India’s long-term financial strategy, offering retirement benefits through monthly drawings. This blog post delves into the significant achievements of the NPS during the 2024-25 fiscal year, highlighting its growth and impact on the pension system.

Subscribers Have Expansed Significantly in 2024-25

By the end of March 2025, the NPS had reached over 165 lakh subscribers, marking a notable milestone. This includes:

• Over 12 lakh private sector subscribers during the fiscal year 2024-25.
• Introduction and growth of NPS Vatsalya, a private pension scheme launched in September 2024 with over one lakh subscribers, contributing to the overall expansion.

Impact on AUM

The Assets Under Management (AUM) for both NPS and Atal Pension Yojana (APY) expanded by 23% during the same period, reaching a combined total of Rs 14.43 lakh crore by end-March 2025.

NPS Vatsalya: A Scheme to Enrich the System

• Subscribers: NPS Vatsalya saw an increase from its initial launch in September 2024.
• Impact: This scheme played a crucial role in enriching the broader NPS system, contributing significantly to the subscriber numbers and overall AUM.

Looking Ahead for Future Growth

The success of the NPS in 2024-25 is indicative of its potential. The upcoming fiscal year will see continued efforts to attract more subscribers through strategic initiatives that aim to enhance the benefits of the pension system, ensuring long-term sustainability and growth.

In summary, the National Pension System demonstrated remarkable growth during 2024-25, with significant subscriber numbers and increased AUM. The introduction of NPS Vatsalya further enriched the system, setting a strong foundation for future developments. This success highlights the flexibility and appeal of NPS in attracting young people to financial planning.