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VOL. 11, ISSUE 1 (2026)
Financial sustainability and inclusiveness of India’s unified pension scheme: A policy analysis
Authors
Sudhanshu Shekhar, Dr. Aakash Bhardwaj
Abstract
Ensuring income
security in old age has emerged as a critical public policy challenge for
emerging economies facing demographic transition, fiscal constraints, and
persistent labor market informality. India’s pension system has historically
evolved in a fragmented manner, resulting in limited coverage and uneven access
to formal retirement savings, particularly for informal and self-employed
workers. The introduction of the Unified Pension Scheme represents a
significant policy effort to consolidate pension arrangements within a coherent
framework linked to the National Pension System, with the stated objectives of
enhancing financial sustainability and expanding inclusiveness. This study
undertakes a policy-oriented analysis of the Unified Pension Scheme by
examining its design features, governance structure, and potential outcomes
through the dual lenses of fiscal sustainability and social inclusion. Drawing
on secondary data from government publications, regulatory reports, and peer
reviewed academic literature, the analysis situates India’s reform within the
broader context of global pension transitions toward defined contribution
systems. The findings suggest that the Unified Pension Scheme strengthens long
term sustainability by reducing implicit pension liabilities and improving
administrative efficiency through standardization and digital integration. At
the same time, the scheme exhibits meaningful potential to improve pension
coverage among informal workers, gig economy participants, and mobile labor by
simplifying enrollment and enhancing portability. However, challenges related to
contribution adequacy, participation behavior, and financial literacy remain
significant. The study concludes that while the Unified Pension Scheme
constitutes a structurally sound reform aligned with international best
practices, its effectiveness will ultimately depend on complementary policy
measures aimed at strengthening participation incentives and ensuring adequate
retirement outcomes.
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Pages:93-99
How to cite this article:
Sudhanshu Shekhar, Dr. Aakash Bhardwaj "Financial sustainability and inclusiveness of India’s unified pension scheme: A policy analysis". National Journal of Multidisciplinary Research and Development, Vol 11, Issue 1, 2026, Pages 93-99
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