Economic security and dignity for all

Blitz Bureau

OLD age is an important phase in one’s life and governments around the globe are striving to make this phase of life more stable, dignified, stress-free and economically secure for their people.

According to the Report of the Technical Group on Population Projections (July 2020), India’s elderly population is expected to touch more than 19 crore by 2031. This will be nearly 20 per cent of the country’s total population of that time. This dramatic anticipated increase in the population of senior citizens highlights the urgency of addressing socioeconomic security for these older adults.

It was with this in mind that the Atal Pension Yojana (APY) was introduced by the Government on May 9, 2015 creating a universal social security system focusing on the unorganised sector of India. It helps in addressing the longevity risks among the workers in the unorganised sector and encourages the workers to voluntarily save for their retirement APY is a voluntary, periodic contributionbased pension system under which the subscriber will receive a minimum guaranteed pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000 every month, depending on the contributions made by them.

Serious policy concern

The value of this initiative truly stands out when we see that the share of informal workers in the total employment is nearly 85 per cent. Living conditions of a majority of the elderly population who are working or have worked in this sector are a matter of serious policy concern. On one hand, the elderly population is expected to be 20 pc by 2031. Combined with the fact that the life expectancy of an average Indian will be 75 years by then, Atal Pension Yojana is definitely an attractive option for the elderly.

Many experts have rightly called it, “a specifically designed model of the National Pension Scheme (NPS) to bring the NPS within easy reach of the economically disadvantaged sections of the society.” It is important to note that the APY was born with one single aim – to bring the underprivileged within the fold of the pension sector. In some older schemes, the pension amount is too meagre for the poor elderly. Similarly, for comparable schemes, limitations in terms of coverage is a major hurdle.

For instance, the EPF is applicable only to organisations that employ at least 20 individuals and mostly cater to the organised sector. It is in this light that APY not only brings a vast majority of the economically weaker population under its ambit, but also complements other social security schemes of the Government of India like NPS, MGNREGA and so forth to achieve the vision of Viksit Bharat by 2047.

Women participation

The scheme has seen an overwhelming participation from women, who constitute more than 48 per cent of its subscribers, as on March 31, 2025, aiming to strengthen the vision of Nari Shakti. With its emphasis on informal sector, APY hence naturally brings benefit to these key groups, which are often referred as the ‘four major castes’ and includes the Garib (Poor) and Mahilayen (Women). Going further, the old age pension is not merely about money, it carries a deeper significance. The peace of mind and dignity which it brings to the poor and women is very satisfying.

As of March 31, 2025, the number of subscribers under APY is 7.6 crore and Asset Under management (AUM) is Rs 44,781 crore, adding 1.17 crore subscribers and AUM of Rs 8,250 crore during the FY 2024-2025, recording an annual growth of 15.4 pc in subscriber base and 22.5 per cent in the AUM growth. The top five states in terms of total gross enrolments under APY are Uttar Pradesh, Bihar, Maharashtra, West Bengal and Tamil Nadu. The APY, hence targets the financial inclusion of India’s regionally excluded to achieve a key policy goal of Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas. The year 2035 will be a landmark year. It will be the year when the much-awaited Atal Pension Yojana (APY) subscribers will start getting their first tranche of monthly pensions.

Well thought-out

Through Atal Pension Yojana, pension coverage of the workforce majorly in the unorganised sector – selfemployed, casual, gig, platform workers is achieved – though the adequacy of existing arrangements to deliver old age income security in the long run, considering increase in life expectancy and inflation-indexation going forward, shall be a challenge. However, all in all, the Atal Pension Yojana is a well thought-out scheme, both on financial and social criteria, for the benefit of the masses.

India’s expanding social protection reflects a strong commitment to inclusive welfare and economic security. It is an evolving landscape, with a focus on expanding coverage, strengthening existing schemes, and addressing the challenges of a diverse workforce. The goal is to create a more inclusive and robust social security system for all its citizens.

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