Atal Pension Yojana becomes most popular social security scheme with 2.8 Cr subscribers

With 66% of National Pension System Trust (NPS) subscribers, Atal Pension Yojana (APY) dominates amongst the social security schemes in India. According to the National Pension Systems Trust's annual report, more than 66% of NPS subscribers (2.8 crores) chose the APY by the end of 2020-21. With over 2.8 crore subscribers, mainly from non-metro areas, the Atal Pension Yojana has become the most popular social security system under the National Pension System.

Atal Pension Yojana has 66% of National Pension System subscriber base

The State Government Scheme comes in second with an 11% share. Central autonomous bodies (CAB) account for the least number of NPS subscribers with a 1% share. This is followed by state autonomous bodies (SAB) with a 2% share. The most popular plan among non-metro subscribers is APY. According to the report, this also represents the country's demographic trend, with more unorganised population segments residing in non-metro areas and so having access to the NPS self-initiated plan. According to the report, the total assets under management (AUM) for the National Pension System schemes increased by over 38% year on year to Rs 5.78 lakh crore at the end of the year. The report also stated that as of fiscal 2021, NPS had 4.2 crore registered users. 

Subscriber growth per year 

The Pension Fund Regulatory and Development Authority manages and regulates the National Pension System, a defined contribution retirement savings plan (PFRDA). In terms of subscriber growth rate, APY led with a gain of 33% year over year in the fiscal year ending March 2021, followed by the all-citizen model with a gain of 32%. Non-metros accounted for 3.77 crores NPS users or nearly 89 % of 4.24 crore.

"Non-metros subscribers have grown by 72.34 lakh in fiscal 2021 (growth of 24 per cent over one-year) compared with metros subscribers which have grown by 4.87 lakh to 35.78 lakh in fiscal 2021 (growth of 16 per cent over one-year)," the report said.

According to the report, nearly 85% of NPS subscribers were aged between 18 and 40, a leap of 200 basis points (bps) from their participation in fiscal 2019-20. The 18-25 age group made up most of this young subscriber base, accounting for 30% of the total. As of the conclusion of the fiscal year 2021, there were 2.47 crore male subscribers, up from 2.02 crore and 1.61 crores in fiscal years 2020 and 2019, respectively. Female customers increased to 1.77 crores in fiscal 2021, up from 1.43 crore in fiscal 2020 and 1.12 crore in fiscal 2019. Though male subscribers continue to dominate the overall subscriber base, female subscribers rose quicker, increasing by 24% in 2020-21 and 28% in 2019-20, respectively, compared to 22% and 25% for males in the same periods.

Atal Pension Yojana launched in 2015 by PM Modi

Swavalamban Yojana was the previous name for the Atal Pension Yojana. Finance Minister Arun Jaitley referenced it in his Budget speech for 2015. Prime Minister Narendra Modi launched it in Kolkata on May 9, 2015. Former Indian Prime Minister Atal Bihari Vajpayee inspired the name of this scheme. The minimum age to join APY is 18 years old, and the maximum age is 40 years old. After reaching the age of 60, a subscriber would be eligible for a guaranteed pension of Rs 1,000 to Rs 5,000 per month, based on his payments. As a result, the subscriber's minimum contribution time under the APY would be 20 years. The same pension amount would be paid to the subscriber's spouse after his or her death. The subscriber's accrued pension earnings would be returned to the nominee upon the death of both the subscriber and his or her spouse.

How the scheme works 

PFRDA formed the National Pension System Trust under the terms of the Indian Trusts Act of 1882 to look after the assets and finances under the NPS in the best interests of the subscribers. The national Aadhaar ID number is the key document for identifying beneficiaries, spouses, and nominees to eliminate entitlement-related issues in the long run. An individual may provide a copy of their ration card or bank passbook as proof of address. Subscribers must choose a monthly pension between Rs. 1,000 and Rs. 5,000 and pay the needed contribution regularly. Subscribers can choose to reduce or increase their monthly, quarterly or annual pension amount throughout the accumulation phase, depending on the available monthly pension amounts. The bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme would be connected to this scheme.

With inputs from PTI

(IMAGE: SHUTTERSTOCK / PTI)