Chief Economic Adviser (CEA) V Anantha Nageswaran has called for a significant shift in the investment behavior of Indian households, urging them to move away from short-term trading towards long-term savings, particularly in pension schemes. Speaking at NPS Diwas 2026, Nageswaran highlighted the critical importance of these long-duration pension assets for ensuring financial security in old age.
The CEA underscored that retirement is not merely a brief epilogue but can span nearly two decades. He cited figures indicating that an average Indian man has a life expectancy of 18.4 years after age 60, while for women, it extends to 19.6 years. This demographic reality necessitates robust long-term financial planning to sustain individuals through their post-retirement years.
Pension Funds as Patient Capital for Infrastructure
Beyond individual security, Nageswaran also pointed out the broader economic benefits of increased pension savings. He noted that these funds can serve as vital 'patient capital' for investing in critical infrastructure projects, which typically require long-term financial commitments. Sanjay Lohiya, Secretary, Department of Financial Services, echoed this sentiment, expressing hope that a growing pool of pension funds would increasingly support such long-term investments.
The National Pension System's Appeal
Lohiya further highlighted the attractiveness of the National Pension System (NPS). He observed that even when a Unified Pension Scheme was introduced, offering government employees an option to switch, most NPS subscribers chose to remain. Younger employees, in particular, anticipate better returns from the NPS compared to alternative schemes.
Responsibility of Pension Fund Managers
Despite the system's appeal, Lohiya issued a strong reminder to pension fund managers regarding their immense responsibility. He emphasized that managing a pension corpus differs significantly from handling debt or mutual funds, requiring a heightened sense of trust and duty towards subscribers. He urged the Pension Fund Regulatory and Development Authority (PFRDA) and its overseers to uphold the confidence placed in them by millions of investors.
Expanding NPS Reach with NPS Tatkal
In a related development, PFRDA Chairman S Ramann announced ambitious plans to add approximately 2-3 crore new subscribers to the NPS over the next two years. A key initiative to achieve this goal is the NPS Tatkal scheme, which enables the opening of NPS accounts via UPI apps using KYC-verified bank accounts, with contributions also facilitated through UPI. This innovative approach is expected to significantly expand NPS coverage, especially in Tier II and Tier III cities. Ramann expressed optimism that by 2047, every Indian family would have at least one NPS account, reinforcing a culture of long-term financial planning across the nation.