Correct Answer :   HDFC

HDFC Pension has launched a first-of-its-kind NPS Preference Index that highlights the preference of NPS amongst different consumer groups.

The NPS is a government-backed retirement savings program designed to provide financial security to Indian citizens during their retirement years. NPS can be subscribed to by any Indian citizen, aged between 18-70 years, on a voluntarily basis.

Speaking on the launch, Sriram Iyer, Chief Executive Officer, HDFC Pension said, “National Pension System (NPS) is instrumental to facilitate an income post retirement, making it pivotal for long-term financial security. In India, a significant opportunity exists to boost NPS adoption, which is why there was a need to delve deeper into the intricacies and understand why."

HDFC Pension commissioned an independent market research specialist, Ipsos for conducting the survey for the NPS Preference Index. The findings are based on a consumer market research study with 1,801 NPS aware consumers across Tier I/II/III locations in the age cohorts of 30-40 years and 45-55 years.

The objective of the survey was to understand consumer outlook towards retirement and gauge consumer familiarity, appeal and consideration, leading to the ‘NPS Preference Index’ which can be tracked over time.

The survey findings indicate that currently the NPS Preference Index stands at 54 (on a scale of 0 to 100). Hence, it can be concluded that NPS Preference Index is currently at a moderate level and is equally influenced by the three pillars of familiarity, appeal and consideration.

NPS Preference Index improves with increasing income level of the consumers. North region has the highest NPS preference index (57) compared to other regions.

Even though, on an average, 32 years is considered as an ideal age to start retirement planning, the retirement corpus need is often underestimated..

Source : CNBC