India’s pension assets under management (AUM) are projected to reach ₹118 trillion by 2030, with the National Pension System (NPS) expected to contribute nearly 25%, according to DSP Pension Fund Managers. The surge is driven by demographic shifts, rising life expectancy, and increasing investor preference for market-linked retirement solutions.
India’s elderly population is set to grow 2.5 times by 2050, with post-retirement life expectancy averaging 20 years. Despite this, the pension market remains underpenetrated at just 3% of GDP, while the retirement savings gap is widening by 10% annually, potentially reaching $96 trillion by 2050. Investors are moving away from traditional savings, with cash and bank deposits declining from 62% to 44% over the past decade. NPS private sector AUM has grown at 26.8% annually over the past five years, reaching ₹2,78,102crore. Between FY 2020 and 2024, male subscribers increased by 65%, while female registrations surged by 119%. The recently launched NPS Vatsalya has already attracted 86,000 subscribers.
The trend is also gaining traction in Guwahati, where investors are increasingly exploring NPS for long-term financial security. Financial advisors in the city are witnessing a growing interest in structured pension plans, aligning with the broader national shift toward retirement planning. “With the right policies and awareness, India’s pension market has immense potential. We aim to be among the top five players in the next five years,” said Rahul Bhagat, CEO, DSP Pension Fund Managers.
