NPS equity schemes gave over 13% annual returns: FM Sitharaman

India's National Pension System (NPS) has emerged as a high-performing and cost-effective retirement planning tool, delivering over 13 per cent average annual returns in its equity schemes since inception, Finance Minister Nirmala Sitharaman said while addressing the NPS Diwas conference on 'Inclusive Pensions, Innovative Solutions: Strengthening Retirement Security in India' organized by Pension Fund Regulatory and Development Authority (PFRDA) in New Delhi.

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Other investment options under NPS have also posted robust long-term returns: around 9 per cent annually for both corporate debt and government securities schemes, making NPS one of the most attractive pension products in the world.»The schemes under NPS have generated attractive returns. The average annual returns since inception under the equity scheme have been over 13 per cent, and around 9 per cent for both Corporate Debt and Government Securities schemes,» Sitharaman saidThe minister emphasized that these strong returns, combined with the system's low cost, portability, and flexibility, make NPS a cornerstone of retirement security for all Indians, not just government employees.Introduced in 2004 by the then NDA government, NPS marked a crucial shift from a defined-benefit (DB) model to a defined-contribution (DC) framework, maki