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Informist, Thursday, Jan. 29, 2026

 

--EconSurvey: India population gradually ageing, median age rising 

--EconSurvey: India's rising median age shows transition to older population 

--EconSurvey: Pension system expanded steadily but coverage remains modest 

--EconSurvey: More contributory, non-contributory plans to aid pension growth 

 

MUMBAI – India is well-positioned to develop a pension system that is inclusive and future-ready with sustained institutional strengthening, according to the Economic Survey 2025-26 (Apr-Mar), which was tabled in Parliament by Finance Minister Nirmala Sitharaman Thursday.

 

"Continued innovation in service delivery, data integration and consumer guidance will be crucial for the next phase," according to the document. "Global experiences of developed pension systems underscore the value of lifecycle planning tools, personalised dashboards, and automated advisory nudges, all of which can be integrated into India's maturing digital public infrastructure."

 

More contributory and non-contributory schemes will support the country's pension growth, the survey said. Engagement with state governments, cooperatives, farmer networks, and gig-platform companies can ensure last-mile reach, it said.

 

"At the contributory end, simplifying enrolment through Aadhaar-based authentication, enabling frictionless micro-contributions via digital payments, and synchronising pension outreach with broader financial inclusion drives can help deepen penetration."

 

India's pension system has expanded steadily, but overall coverage remains modest relative to the size of the workforce, according to the survey. Persistent awareness gaps, with low-income and rural households maintaining limited exposure to long-term retirement products also prevail.

 

The Mercer CFA Global Pension Index, which is a global benchmark, consistently ranks India lower in terms of adequacy and system maturity, reflecting relatively low replacement rates and modest pension assets compared to the Organisation for Economic Co-operation and Development countries, the survey said. Pension assets in India make up 15-20% of GDP, significantly less than the 60-100% range seen in more advanced pension markets.

 

The proportion of the old-age population, above 60 years, to the total population is expected to increase from 10.1% in 2021 to 14.9% in 2036. "At the same time, the proportion of the working-age population (15-59) is projected to increase marginally from 64.2 per cent to 64.9 per cent during the same period," the survey said.  End

 

Reported by J. Navya Sruthi

Edited by Ashish Shirke

 

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