Financial dignity must be core to growth, pension planning a necessity: FM Sitharaman

New Delhi, Oct 2 (IANS) As India marches towards the vision of Viksit Bharat at 2047, financial independence and dignity must remain at the core of our growth story, said Finance Minister Nirmala Sitharaman, adding that pension planning is not a choice, but a necessity for every citizen to secure their old age.

Speaking at an event by the Pension Fund Regulatory and Development Authority (PFRDA), she said the National Pension System has transformed India’s pension landscape, expanding from government employees to all citizens, while offering one of the lowest-cost schemes with returns consistently above expectations.

“NPS must become a Jan Andolan, encouraging people from all walks of life to embrace retirement planning early” the Union Minister said.

The Finance Minister urged to train women as 'Pension Sakhis' and incentivise them for sustained increase in enrolment, much like ‘Bima Sakhis’ of LIC.

Speaking on the occasion, M. Nagaraju, Secretary, Department of Financial Services (DFS), said that as we navigate through the changing socio economic landscape, it is very important to create a robust pension framework for nation.

He stressed upon the need for financial literacy, institutional collaboration, and a future-ready pension network. He also stated that Forum for Regulatory Coordination and Development of Pension Products has been set up to act as a platform for harmonising regulatory practices, investment standards across pension products.

Dr. V. Anantha Nageswaran, Chief Economic Advisor, Government of India while addressing the audience mentioned that India is ageing faster as the data suggests that by 2050, the population above 60 years shall be doubled.

The fundamental driver of pension and savings is economic growth and Government is committed to ensure it through various initiatives. He mentioned that government has taken many steps to ensure that people have enough money at hand for savings which can be utilised for investing into the financial products such as pension.

S. Ramann, Chairperson, PFRDA, said, "The National Pension System is not just a retirement plan, it is a promise of financial security for every Indian citizen”.

With over 9 crore subscribers and Rs 15.5 lakh crore AUM as of August 31, NPS has consistently delivered more than 9 per cent CAGR over 14 years.

“Our focus is to extend this coverage further through initiatives like the Multiple Scheme Framework, enabling inclusive access, greater flexibility, and personalised solutions,” he mentioned.

--IANS

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