The Business Bytes
THEBUSINESSBYTES BUREAU
MUMBAI, FEBRUARY 27, 2025
India’s pension assets under management (AUM) are projected to grow significantly, reaching ₹118 trillion by 2030, with the National Pension System (NPS) expected to contribute around 25%, according to DSP Pension Fund Managers. This growth is driven by shifting demographics and evolving financial habits.
India’s elderly population is set to expand 2.5 times by 2050, with post-retirement life expectancy averaging 20 years. Despite this, the pension market remains under-penetrated, comprising just 3% of GDP. The retirement savings gap is widening by 10% annually and could reach $96 trillion by 2050. Indian investors are steadily moving from traditional savings to market-linked investments, as seen in the decline of cash and bank deposits from 62% to 44% over the past decade.
NPS private sector AUM has surged 26.8% annually over the last five years, rising from ₹84,814 crore to ₹2,78,102 crore. Between FY 2020 and 2024, new registrations grew significantly, with male subscribers increasing by 65% and female subscribers by 119%. Launched in September 2024, NPS Vatsalya has already attracted over 86,000 subscribers.
By 2030, NPS private sector AUM is expected to surpass ₹9,12,000 crore, with over 15 million subscribers. Key growth drivers include tax incentives, government employees opting for private sector fund managers, greater participation from younger investors (20–30 age group), and the adoption of AI-driven fund management strategies.
“India’s pension market is poised for rapid transformation. With the right policies and awareness, it can unlock significant value for citizens. We are confident in our investment strategy and aim to be among the top five players in the industry within five years,” said Rahul Bhagat, CEO of DSP Pension Fund Managers.
