Economic Survey 2025-26: India’s Pension Moment Has Arrived

India is moving into an age profile that looks very different from what it did two decades ago. The Economic Survey 2025–26 points out that the proportion of people above 60 is climbing year after year, while the working-age population is no longer growing at the same speed. This is not just a statistical shift. It changes how families plan their finances and how governments think about long-term security. Retirement is becoming a present-day concern rather than something to be dealt with much later.

A Pension Structure That Grew Gradually

India’s pension system did not appear in a single reform or one grand policy decision. It developed step by step through several schemes serving different income groups. The National Pension System (NPS) provides a market-linked route for retirement savings. The Employees’ Provident Fund (EPF) continues as the main savings pool for salaried employees. The Atal Pension Yojana (APY) is aimed at workers who prefer a guaranteed monthly pension, while the Unified Pension Scheme (UPS) has been introduced for central government staff. Instead of one uniform model, the country now runs multiple parallel channels.

NPS Finds A Wider Audience

Over time, NPS has moved beyond its early image as a government-employee product. It now covers private-sector employees, corporate enrolments, the self-employed, and even minors through NPS Vatsalya accounts. By December 2025, the subscriber base had moved past 211 lakh, and the money managed under the scheme had climbed noticeably. The rise points to more people signing up over the years, and many of them putting in higher amounts than before.

APY’s Role In Providing Certainty

APY serves a different purpose. Its appeal comes from the promise of a fixed pension amount rather than market-linked returns. Since its launch in 2016, enrolment has increased gradually, especially among workers with irregular or modest incomes. For many families, it works as a basic financial cushion rather than a wealth-building tool.

Reaching Workers Outside Formal Payrolls

One of the continuing themes in the Survey is the effort to include workers who are not part of traditional salaried employment. New models are being tested for gig and platform workers, while partnerships with farmer-producer organisations, micro and small enterprises, and self-help groups aim to improve outreach in rural and semi-urban areas. The goal is to narrow long-standing gaps that employer-based retirement systems often leave behind.

Where The Gaps Remain

Even with multiple schemes in operation, pension coverage remains limited compared to the overall size of India’s workforce. Informal employment, inconsistent earnings, and low financial awareness continue to slow participation. International comparisons also show that India’s retirement savings pool forms a relatively small share of GDP, pointing to concerns not just about access but also about adequacy.

Looking Ahead

The Economic Survey 2025–26 indicates that the next phase of progress will rely on practical improvements rather than sweeping announcements. Easier enrolment procedures, flexible contribution options, job portability, and closer coordination among regulators are seen as key steps. Greater use of digital platforms, especially those already linked to work and payments, could make retirement saving a routine habit instead of a separate financial decision.