Higher NPS returns for pensioners: PFRDA sets up panel to consider adding different asset classes — Here’s all we know

The Pension Fund Regulatory and Development Authority (PFRDA) has set up a panel to explore options for long-term addition of different asset classes with aim to give pensioners higher returns, Chairman S Ramann told PTI this week.

“We have to look at new assets which can provide continuous and steady growth over a long period of time without volatility… We cannot show a very high return in one year, and after that, it drops off. That volatility we need to avoid,” he stated.

NPS subscribers to benefit?

Ramann said that the panel will take key learnings from global pension funds and suggest a “glide path” to ensure better returns for subscribers of the national pension scheme (NPS).

“We have set up a committee which is looking into the long-term induction of different asset classes. We are learning from the experience of pension funds which are there globally. I am sure we will come up with a very good smooth glide path where we will be able to ensure that the returns coming to the NPS holders will be steady and will be on the rise,” he added.

Notably, till FY26, the NPS had 2.17 crore subscribers, with a total corpus of ₹15.95 lakh crore, who are expected to benefit from the pension fund regulator’s decisions. Further, the scheme is expected to see 22% growth in subscribers this year, the report added.

PFRDA’s minimum assured pension plan: Latest updates

When asked about the authority’s Minimum Assured Pension plan, Ramann said the concept is still being worked on. “We are certainly looking at the concept of a Unified Pension Scheme for the private sector. That is the way it is easily understood if one has a guaranteed scheme,” he said, adding, there is a need to balance risk and return.

“Somebody has to provide a guarantee for assured return, like in Atal Pension Yojana (APY), the government gives assurance and they bear the cost,” he said.

In 2025, Last year, PFRDA issued a consultation paper on proposals for flexible, assured and predictable pension schemes. It proposed three schemes under the NPS framework, each catering to different subscriber needs for assured and flexible pension payouts.

Increased pension under APY? What Chairman said…

Recently, Ramann had also said that the authority is considering demands that it increase the upper limit of its monthly pension payout under APY from the current ₹5,000/month. “It will take time because these are long-term schemes, and long-term liabilities of the government are intertwined,” he said at the APY annual felicitation programme in New Delhi on 20 May.

The PFRDA will engage with the Department of Financial Services (DFS) on the matter and provide a detailed report, he added. Meanwhile, Ramann at the event also announced that APY’s subscribers count is expected to cross the 10-crore mark this financial year.

He also highlighted the significant rise in enrolments among the 18–25 age group, reflecting increasing awareness among youth regarding long-term financial security, and emphasised the need to further strengthen subscriber engagement and pension awareness across the country.

NPS awareness for MSMEs, farmers on, says Ramann

Further, Ramann told PTI that the authority is also working to sensitise various non-government sectors to NPS. This includes a newly created sub-segment which comprises farmers and agrarian based workers, smaller MSMEs and MSME clusters across the country, and self-help groups (SHGs) with budding entrepreneurs.

“We have to target all these groups — this constitutes 20-25 crore people — and that is where it is our public duty to ensure that the right message goes to all these people (to save money for retirement),” he added.

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