 "AUM of NPS, APY crosses Rs 10 trillion: PFRDA chairman Deepak Mohanty")
The assets under management (AUM) of National Pension System (NPS) and Atal Pension Yojana (APY) crossed the milestone of Rs 10 trillion on 23 August, Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty said on Friday.
He expressed confidence that NPS’ AUM would be close to Rs 12 trillion by the end of the current financial year. The AUM has doubled to Rs 10 trillion from Rs 5 trillion in just two years and ten months.
Out of the total AUM, NPS had a corpus of Rs 9.65 trillion, while APY and NPS Lite corpus stood at Rs 30,051 crore and Rs 5,157 crore respectively, at the end of 25 August.
Pension fund regulator PFRDA plans to come out with a systematic withdrawal plan, which will provide flexibility to pension account holders to withdraw a lump sum fund according to their choice upon completion of 60 years.
"It is at a very advanced stage. Hopefully, it should be implemented from October or November," Mohanty said.
Currently, NPS subscribers, after turning 60, can withdraw up to 60 per cent of the retirement corpus as a lump sum, while the remaining 40 per cent mandatorily goes into buying an annuity.
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However, a systematic withdrawal plan will allow NPS subscribers to opt for periodic withdrawal—either monthly, quarterly, half-yearly, or annually—till the age of 75 years.
PFRDA increased the entry age up to 70 and the exit age to 75, keeping in view the longevity.
"We have taken various steps to enhance financial education, empowering subscribers to make well-informed decisions and leverage the advantages of the formal financial sector while maintaining a clear understanding of associated risks and trade-offs," Mohanty said.