India's retirement-income replacement rate stands at an estimated 35–40%, significantly lower than the global benchmark of around 60%, said PFRDA Chairman S. Ramann. This indicates that retirement income in India replaces a smaller portion of pre-retirement earnings, highlighting the need for stronger long-term retirement savings.
To address this gap, PFRDA aims to expand pension coverage through the National Pension System (NPS) and Atal Pension Yojana (APY). The regulator targets enrolling 30 crore subscribers over the next four to five years, with the goal of enhancing retirement-income security nationwide.
Ramann emphasized the importance of increased individual investment and long-term savings to secure adequate post-retirement income. The expansion of NPS and APY seeks to promote broader participation in formal pension schemes and bolster financial preparedness for retirement.
