Identifying Factors Influencing Subscribers Perception towards Investment in National Pension Scheme

Abstract

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NPS is South Asia’s first defined contribution pension scheme that provides various facilities, such as personal retirement account, scheme choices, professional fund management institutes, and account transfer option to the organised as well as the unorganised sector of the country. The study seeks to explore the factors influencing investment in NPS and to examine the perception of NPS subscribers in the organised as well as the unorganised sector, in terms of socio-economic factors. Exploratory factor analysis, t-test, and one-way ANOVA were used to analyse the data. The study revealed that the unorganised sector respondents are more in favour of NPS than those in the organised sector. It was also observed that gender, age, and monthly income have a significant relation with factors of NPS in both the sectors, but education qualification does not show any significant relation with NPS factors in the organised sector. The paper has implications for the government, fund managers, and pension policy makers.

Keywords: NPS, Organised Sector, Unorganised Sector, Socio-Economic Factors, Subscribers Perception

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