Private sector started liking NPS seeing the high returns, 1.54 crore people are associated with the scheme

Currently, 11% of the population is over 60, and by 2050, that number will rise to almost 21%. For these individuals, NPS might be of great assistance in offering a suitable pension plan.

NPS's return rate is the primary reason why private sector workers who are aware of their pension are drawn to it. Over the past 20 years, the average equity return of NPS has been 14% annually, while the average equity return of pension funds has been 20% annually for the past three years.

The return on NPS's corporate bonds has been 7% over the past three years, while the return on government securities has exceeded 9%. Contributions from employees are invested in stocks, bonds, and equities under NPS, and the profits are utilised to establish individual employee funds. The overall NPS fund is on the verge of reaching 13 lakh crores, a 28% rise in the past year, thanks to strong returns.

Employees who join the NPS can use 40% of their whole fund to buy a lifetime pension for themselves and their spouses after they turn 60. They can receive a lump sum payment for the remaining 60%. An individual may continue to contribute to the NPS fund until they turn 75 if they so choose. Starting an NPS fund only requires an annual investment of Rs 1000.

Chitra Jaisimha has been appointed by PFRDA to serve as the NPS Trust Chairperson. The date of her appointment is October 17. Chitra spent the previous four years as a trustee for the NPS Trust. She has nearly twenty years of experience working in different insurance areas.