CHILDREN’S PENSION PLAN NPS-VATSALYA DRAWS OVER 1.3 LAKH ENROLLEES

New Delhi, Aug 12, 2025 : Over 1.3 lakh minors have been enrolled under the National Pension System (NPS) Vatsalya Scheme since its launch in September last year, the Union government informed Parliament on Monday.

In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that enrollments were recorded till August 3.

Designed for children, NPS-Vatsalya allows parents or guardians to contribute a minimum of Rs.1,000 annually, with no upper limit, to build a retirement corpus for the minor.

The account converts into a regular NPS account once the subscriber attains majority. Contributions made by a parent or guardian qualify for an additional deduction of up to Rs.50,000 under Section 80CCD (1B) of the Income Tax Act in the old tax regime.

Chaudhary said the scheme is implemented through Points of Presence — bank and non-bank entities regulated by the Pension Fund Regulatory and Development Authority — and can also be opened online via the NPS Trust platform.

Launched on September 18, 2024, NPS-Vatsalya aims to “promote inter-generational equity and financial security” by encouraging early savings for children, Chaudhary said.

According to a June survey report by Grant Thornton Bharat, 43% of Indians aged 25 or below prefer to retire between 45 and 55 years, but only 11% believe their current investments can meet their pension expectations. More than half (55%) of respondents expect a monthly pension exceeding Rs.1 lakh, but only 11% think their current investments are sufficient to achieve this.