New Delhi, 26th August 2025:
The Pension Fund Regulatory and Development Authority (PFRDA) is placing a spotlight on the need for innovative strategies to boost enrolment in the government’s Unified Pension Scheme (UPS). This call to action came from PFRDA Chairman S. Ramann during an industry event held in New Delhi on Monday. In light of relatively low uptake compared to the Atal Pension Yojana (APY), which recently hit an impressive milestone of over 81 million subscribers, the urgency for enhanced measures has never been clearer.
Persistent Challenges in Enrolment Rates
Despite the government extending the enrolment deadline for the UPS to 30 September, the numbers reveal a lukewarm response from potential participants. According to finance ministry data presented in Parliament, only 31,555 central government employees had made the switch from the National Pension System (NPS) to the UPS as of 20 July. This lack of enthusiasm raises questions about the effectiveness of the current outreach and marketing strategies aimed at encouraging enrolment.
While Chairman Ramann did not specify what new measures might be implemented, he emphasized the crucial support provided by the banking sector in facilitating pension options. “The Atal Pension Yojana, now in its 10th year, has seen an unprecedented addition of 5 million subscribers in just a single fiscal year, with 46% of those being youth aged 18–25 years,” Ramann noted. This transition towards appealing to younger audiences may offer valuable insights for boosting the UPS programme as well.
Success Stories of Atal Pension Yojana
The APY has emerged as a benchmark for success in India’s pension landscape. With over ₹48,000 crore of assets under management and a remarkable compound annual growth rate (CAGR) of 9.12% since its launch, the APY is proving to be both robust and sustainable. The data speaks for itself: gross enrolments under the APY surpassed 81.1 million by 21 August, with more than 11.7 million new subscribers joining in the fiscal year 2025 (FY25). Interestingly, in FY25, 55% of these new enrolments were women, highlighting the scheme’s appeal across different demographics.
However, for the UPS to achieve similar levels of engagement, Ramann called on banks, especially private sector institutions, to intensify their efforts in promoting financial literacy and developing strategies to ensure ongoing participation. “The commitment to achieve pension saturation must be a collective responsibility, and banks are key players in this endeavor,” he stated, urging a collaborative approach.
A Shift in India’s Pension Landscape
India’s approach to pension policy has seen significant evolution. Initially, systems were based on guaranteed benefits, but there has been a gradual move towards market-linked schemes. The Old Pension Scheme (OPS) was replaced by the NPS for new government employees in 2004, shifting to a more contributory, market-driven model. The launch of the APY in 2015 catered specifically to informal workers, adding another layer to the pension framework. Most recently, in April this year, the government introduced the UPS to restore assured benefits, emphasizing the need for more stable retirement solutions in an uncertain economy.
With the APY gaining traction as a reliable retirement option for millions, the PFRDA reaffirms its commitment to collaborate closely with banks and post offices. “It’s essential that every eligible citizen gets covered to secure a dignified future for all,” the regulator highlighted. This concerted effort aims to ensure that the older and more vulnerable populations, as well as informal workers, can access the pensions they deserve.
Conclusion: A Call for Action
The growing success of the Atal Pension Yojana provides a roadmap for the PFRDA as it brainstorms new tactics to enhance engagement with the UPS. A solid framework built on enhanced financial literacy, youth outreach, and robust marketing can drive the pension scheme forward. As citizens are increasingly recognizing the importance of planning for their retirement, the challenge remains for regulators and the banking sector to adapt accordingly. For more trusted updates on banking and finance, follow Bankerpedia.
Original source: www.livemint.com
