'NPS will evolve as umbrella scheme for old-age needs'

With relaxed exit rules, flexible investments and a push to attract private, gig and self-employed workers, the Pension Fund Regulatory and Development Authority (PFRDA) now aim to align retirement savings with life needs-pensions, portability and potentially healthcare- creating a more inclusive, market-driven social security system, its chairman Sivasubramanian Ramann tells Prasanta Sahu.

- SIVASUBRAMANIAN RAMANN , CHAIRMAN,PFRDA

Excerpts:

Over the last few months, several reforms have been introduced by the pension regulator. What is the larger objective behind these steps?

All these reforms converge on one central goal: to expand adoption of the National Pension System (NPS) among non-government subscribers. NPS is unique-it is completely voluntary, market-linked, and operates without any budgetary burden on the government. Unlike other financial products, the government neither holds pension fund companies nor bears any capital infusion responsibility. NPS represents a transparent, consumer-oriented, private-sector architecture. While mutual funds often serve short-term liquidity needs, NPS offers long-term savings discipline-an essential element of retirement security.

Why is expanding NPS participation among nongovernment individuals so critical?

Across financial products, NPS is the only instrument that allows wide distribution without fiscal implications for the government. It is a pure market-return product with no sovereign guarantees. We aim to make NPS naturally attractive to citizens by aligning it with their life goals-housing, education, healthcare, and retirementrather than forcing behavioural change.