PFRDA aims pension cover for entire agri workforce
Focusing on Farmer Producer Organizations as effective channels to spread awareness, onboard members
Mamta Rohit, ED, PFRDA
The Pension Fund Regulatory and Development Authority (PFRDA) has launched a fresh drive to expand pension coverage to include India’s agricultural workforce, with a focus on Farmer Producer Organizations (FPOs). The regulator aims to bring farmers and other informal workers into the National Pension System (NPS) and Atal Pension Yojana as part of its Vision 2047: Pension for All, which coincides with India’s centenary of independence.
“India’s working population is about 46 crore, but only 17 crore currently enjoy pension coverage. By 2047, we want the entire workforce—especially those in the unorganized sector—to be part of the pension ecosystem,” said Mamta Rohit, Executive Director, PFRDA, in an interaction with Bizz Buzz and The Hans India on the sidelines of an agri-conclave organised by Samunnati in Hyderabad.
Highlighting farmers as an underserved yet crucial segment, Rohit said: “Agriculture is highly vulnerable due to seasonal fluctuations. A pension provides much-needed financial security. FPOs, being organized and digitally enabled, are an effective channel to spread awareness and onboard members.”
The regulator, which currently manages over 8 crore subscribers and Rs15.56 lakh crore in assets under management (AUM), is also introducing innovations to make pensions more accessible and flexible. These include: Extending entry age to 70 years and allowing withdrawals until 75 for late joiners; Systematic withdrawal plans for steady post-retirement income; Flexible withdrawals of up to 25 per cent for health, education, marriage, or housing needs; Launch of NPS Vatsalya, which lets minors open accounts from birth, enabling up to 75 years of compounding.
PFRDA also flagged challenges in reaching India’s vast informal workforce, citing digital gaps and behavioral barriers. “Young people, though digitally savvy, often prefer instant returns over long-term savings, while those less familiar with technology need handholding,” Mamta Rohit noted.
To overcome these hurdles, PFRDA plans to intensify partnerships with FPOs, MSMEs, and cooperatives, alongside awareness drives through local organisations, to bring women, youth, and rural communities into the pension fold.
