India’s pension assets under management (AUM) are set to witness exponential growth, reaching an estimated ₹118 trillion by 2030, according to DSP Pension Fund Managers. The National Pension System (NPS) is expected to account for about 25% of this total, driven by demographic shifts and evolving retirement trends. India’s elderly population is projected to grow 2.5 times by 2050, with post-retirement life expectancy averaging 20 years. Despite this, pension penetration remains low at just 3% of the GDP. The widening retirement savings gap, expected to grow at 10% annually, could reach $96 trillion by 2050. However, Indian investors are increasingly shifting from traditional savings methods to market-linked investments, as evidenced by a decline in cash and bank deposit dependence from 62% to 44% in the past decade.
The NPS private sector AUM has expanded by 26.8% annually over the last five years, rising from ₹84,814 crore to ₹2,78,102crore. Between FY 2020 and 2024, male subscriber registrations increased by 65%, while female subscribers surged by 119%. The recently introduced NPS Vatsalya has garnered over 86,000 subscribers. DSP Pension Fund Managers projects that NPS private sector AUM will surpass ₹9,12,000crore with over 15 million subscribers in the next five years. Key growth drivers include tax reforms, greater adoption of private sector fund managers, and AI integration in fund management.
The expanding pension sector presents new opportunities in Guwahati’s financial market. With growing financial literacy and increased awareness of NPS benefits, more investors in Guwahati are expected to shift towards structured retirement planning. Financial advisors and wealth management firms in the city are actively promoting pension schemes, ensuring broader participation in India’s evolving pension landscape. “We believe India’s pension market is poised for rapid growth. With the right policies and awareness, it has the potential to unlock significant value for citizens. We expect to be among the top five players in this space within the next five years,” said Rahul Bhagat, CEO of DSP Pension Fund Managers.
