“PFRDA has reduced the vesting period to 15 years or retirement, whichever is earlier, and permitted 100% equity allocation under the Multiple Scheme Framework (MSF), compared to the earlier 75% cap. These steps have made NPS far more flexible and appealing to a younger audience,” Sriram Iyer,Managing Director and CEO, HDFC Pension Management
New Delhi: HDFC Pension Management Company Limited aims to strengthen retirement readiness across India and double its subscriber base within the next few years, Managing Director and CEO Sriram Iyer told ANI.
“We aim to take NPS to every earning Indian, especially the youth and unorganised workforce. We aim to double our subscriber base in the next few years while maintaining our focus on stable long-term returns and exceptional customer experience,” Iyer told ANI exclusively in a mailed interview.
He said that over the past decade, owing to the efforts of the Pension Fund Regulatory & Development Authority (PFRDA) and various intermediaries in the NPS ecosystem, the company has seen a remarkable evolution in awareness, participation, and trust in NPS as a retirement vehicle.
Today, HDFC Pension manages around Rs 1.45 lakh crore across more than 26 lakh subscribers, making it the largest private Pension Fund Manager in the country, he said.
The company has also clocked an impressive 70 per cent CAGR in assets under management (AUM) over the last 12 years.
In 2019, the company acquired a Point of Presence (PoP) license, expanding its service capabilities.
“We are now the largest Corporate NPS PoP in the industry, managing over 4.75 lakh corporate PoP subscribers across 4,230+ corporate relationships,” he said.
Talking on the company’s priorities for its next phase of growth, Iyer said, “Our focus areas are threefold broadening distribution and last-mile access, driving awareness and education, and product innovation with superior customer experience. We are collaborating with banks, fintechs, and digital ecosystems to make NPS available at the click of a button.”
Speaking on the benefits of compounding to the young subscribers, Iyer said, “Starting early allows investors to benefit from the power of compounding, even small contributions can grow substantially over time.” Recent regulatory reforms have made NPS even more attractive, Iyer said.
“PFRDA has reduced the vesting period to 15 years or retirement, whichever is earlier, and permitted 100% equity allocation under the Multiple Scheme Framework (MSF), compared to the earlier 75% cap. These steps have made NPS far more flexible and appealing to a younger audience,” he said.
The next phase of NPS growth will undoubtedly come from Tier-2 and Tier-3 cities, he said.
He acknowledged, however, that behavioural barriers remain. “Our mission is to shift this mindset and help people see that retirement isn’t an age, it’s a goal.”
HDFC Pension today commands a 43 per cent market share in the retail and corporate segment among 10 Pension Fund Managers, he said.
Showing optimism for the future, he said the next five years will be transformative for NPS. With stronger awareness, flexible product options, and seamless digital access, NPS is well on its way to becoming India’s default retirement solution.