NPS has traditionally been associated with long-term retirement savings and tax benefits. However, participation is widening among younger and first-time savers and beyond major metros, while newer initiatives are seeking to make the system more relevant across different stages of life.
Rajesh Khandagale, Principal Officer, PFRDA, KFin Technologies, said NPS has “come a long way from being seen merely as a tax-saving product” and is now a mainstream retirement solution. He said digital onboarding is bringing in younger and first-time subscribers, while participation is widening beyond the metros.
The expansion is also visible in the subscriber numbers.
PFRDA Chairman S. Raman said the NPS subscriber base had grown 27% over the past year, with the non-government sector remaining a key focus for the regulator.
Raman said NPS manages a corpus equivalent to around 5% of India’s GDP. PFRDA data showed 2.33 crore NPS subscribers and assets under management of ₹17.49 lakh crore as of September 27, 2026.
More flexibility and newer financial needs
Khandagale said recent initiatives have focused on inclusion, flexibility and helping subscribers make better-informed decisions. These include measures relating to retirement exits, extending the system to informal-sector workers and initiatives intended to help subscribers make decisions about their pension savings.
The changes are also extending into areas beyond retirement. Khandagale highlighted newer efforts linking retirement savings with healthcare and early savings for children, saying these developments reflect an evolution around different life stages.NPS Swasthya is one such health-linked initiative under the NPS framework.
Axis Pension Fund has made its Axis NPS Swasthya Scheme available to subscribers, allowing up to 25% of NPS contributions to be allocated towards a market-linked corpus for eligible medical expenses, including hospitalisation, consultations, medicines and diagnostic tests.
Focus on subscriber awareness
As NPS expands, Khandagale said subscriber education would remain important. He said information needs to be communicated in simple language and through accessible digital channels so that subscribers can understand their options and make informed decisions.
The broader focus, he said, is shifting from simply offering a retirement product towards building a long-term savings habit.