According to the Economic Survey 2022–2023, the growth of NPS and APY subscribers was a significant factor in the country's pension sector's expansion. Government initiatives to increase pension literacy among subscribers to draw young people.

Female APY customers make up about 44percent

Economic Survey 2023: Women make up 44% of voluntary APY subscribers

According to the Economic Survey 2022–2023, the country is moving into a high-middle-income economy, and the pension industry has a tonne of room to develop. In light of this, the government's measures to improve subscribers' pension literacy to attract young individuals. Joining the pension plan would play a vital role in increasing pension availability to a more widespread sector of society, it stated. 

APY Quick Review 

Atal Pension Yojana (APY), a defined pension plan, was launched in 2015 to give unorganized sector workers financial stability after working years. The all-citizen National Pension System's concept enables people to make voluntary contributions towards accumulating a retirement corpus and setting up a pension income stream throughout their retirement years. In the Atal Pension Yojana, women subscribers presently make up around 44%. According to the Economic Survey 2023, issued on January 31, the proportion of women who subscribe under the National Pension System's (NPS) all-citizen model is substantially lower at 24 percent, with male employees predominating the market (76%). 

According to the survey, the number of National Pension System (NPS) and Atal Pension Yojana (APY) participants helped the nation's pension sector flourish. The analysis found that NPS and APY showed an aggregate YoY increase of 25.1% in subscribers. Moreover, AuM rose 22.7% in November 2022 compared to the previous month. In November 2022, the overall contribution climbed by 27.6%, with the All-Citizen model seeing the most increase. Next in terms of contribution size was the Corporate Sector. 

Also read: Financial insights according to survey 

Economic impact on the country

The ratio of assets to GDP has grown from 1.2% to 3.2%. The report shows that the pension sector is expanding faster than the nominal GDP and the population. According to the study, "PFRDA has implemented numerous initiatives to facilitate the accessibility of NPS and APY to subscribers, such as decreasing deadlines for processing payments to T+2 days." Government record-keeping institutions have integrated their systems with DigiLocker to provide subscriber-centric services such as electronic-Pension Retirement Account Numbers (e-PRAN), electronic account statements, and account openings based on Aadhaar and DigiLocker. According to information from India's Pension Funds Regulatory and Development Authority (PFRDA), APY had a more critical gender balance. In 2016–17, women made up 38% of the Pension Yojana subscribers base overall and 38% of the APY base, representing further astounding development.

Distribution of subscribers' ages

The APY scheme's subscriber age distribution indicates that a younger workforce is becoming more represented. The proportion of subscribers between 18 and 25 increased from 29.3 percent in March 2016 to 44.8% as of August 2022. Maharashtra accounted for 17 percent of enrolment across all states, which was the most. In addition, more individuals are choosing to receive a monthly pension of Rs 1000." Approximately 76% of subscribers as of March 2022 have picked a monthly pension payment of Rs 1000. It gets compared to 38% of members as of March 2016. However, the percentage of subscribers choosing the Rs 5000 per month pension has decreased from 47% in March 2016 to 15% in March 2022. Coverage of people in assistance under NPS and APY proportion of the entire population has grown from 1.2% - 3.7% during six years, from FY17 to FY22. 

Also read: Financial plan for women 

Wrapping up 

According to the report, there is much room for expansion in the pension industry as the nation's economy shifts to a high-middle-income status, with per capita income predicted to increase even more. India's demographic structure favors an accumulation phase due to a higher share of younger individuals. It has got noted that financial literacy continues to provide "a substantial issue, not just in developing market countries but also in mature nations." 

Also watch: Economic Outlook of  2023

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