85% of our workforce employed in the unorganised sector workforce who do not have access to any formal pensions, the Government of India (GoI) introduced the National Pension System-Swavalamban (NPS-S) in 2010. This scheme was implemented with of the objective of encouraging citizens engaged in the unorganised sector to save towards retirement. Under the scheme, the government would contribute a total Rs. 1000 per year to every unorganised sector labourer (for the first five years) who saved a minimum of Rs. 1000 in that year. Using data from National Securities Depositories Limited (NSDL) and Pension Fund Regulatory and Development Authority of India (PFRDA), we analyse the impact of the NPS-S scheme. We propose recommendations on the design, delivery architecture, performance incentives for aggregators and customer protection for the NPS-S and other contributory pension schemes that the government may envisage in the future towards old-income security.
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