An analysis of NPS (National Pension System) - A pension cum investment plan applicable in India

Abstract

A regular source of income is very much necessary for senior citizens after their active working life so that they can live confidently without being a burden on others and they can take their decisions independently, enjoying the same living standard that was enjoyed by them before their retirement. These schemes enable the employee family to sustain for long-term in future independently in case of death, retirement, and disability of the earning member. Such pension scheme act as a facilitator by providing insurance for a fully secured future, but its success depends upon the full support of employer. National pension system is a pension scheme which was initiated by government in 2004 for the first time in India for Central Government employees to provide them old age security. This scheme starts with a regular long-term saving and later on provides a steady and attractive market-based return. It helps to plan your retirement effectively. This scheme is controlled by Pension Fund regulatory and Development Authority (PFRDA). National pension system and Atal pension yojana working under PFRDA has pension assets over 10 lakh crore that is contributed by 6.62 crore subscribers, according to latest report from PFRDA. My paper will discuss the objectives and challenges of NPS from supplier as well as subscriber point of view.