Chief Economic Adviser V Anantha Nageswaran has called for Indian households to allocate a greater share of their savings to long-term pension products, saying the rise in market-linked investments has not been matched by a similar increase in retirement savings.
Speaking at an event marking NPS Diwas 2026, Nageswaran said households have become more willing to take market risk through equities and mutual funds, but have yet to commit savings on a large scale for longer periods. He stressed the need for simpler pension products, wider access and stronger retirement-income solutions.
Data cited during the discussions showed that the share of equity and mutual funds in annual household savings increased from about 2% in 2011-12 to around 15% in 2024-25. Meanwhile, pension and insurance assets have remained a relatively small component of household savings.
The push for broader pension coverage is also being supported by the Pension Fund Regulatory and Development Authority (PFRDA). Chairman S Ramann said the regulator aims to add around 2-3 crore NPS subscribers over the next two years through initiatives including NPS Tatkal, which enables digital onboarding through UPI.
The broader objective is to expand access to retirement savings while enabling pension funds to provide longer-term capital to the economy.
