The PFRDA approves four additional pension funds, aiming to expand the National Pension Scheme’s reach to 40 crore subscribers through digitalisation and wider distribution networks, with conservative schemes delivering stable long-term returns.
The Pension Fund Regulatory and Development Authority has approved four additional pension funds, lifting the total to 14, according to chairman Sivasubramanian Ramann. The move comes as India’s retirement savings system seeks to widen its reach beyond established formal-sector workers.
Ramann said the regulator wants non-government National Pension Scheme subscribers to rise to 35 crore to 40 crore over the next five years from about 90 lakh now. He added that the authority expects digital enrolment and wider distribution networks to bring in 2 crore to 3 crore subscribers a year, with a focus on simpler sign-up, stronger last-mile access and broader use of technology.
The National Pension Scheme allows subscribers to choose from approved pension funds, which pool employee and employer contributions and invest them to generate income in retirement. PFRDA says the scheme is intended to support long-term financial security for workers in both organised and unorganised sectors.
Ramann also pointed to the performance of PFRDA’s conservative schemes, which he said have delivered annual returns of 9.2% to 9.3% over 15 years. He cited the Atal Pension Yojana as evidence that scale is possible, noting that 10 crore people joined through bank and regional rural bank networks. The regulator now hopes NPS can build on that reach through digital onboarding.
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