PFRDA launches drive to extend NPS for agri sector

The Pension Fund Regulatory and Development Authority (PFRDA) has launched a drive to expand pension coverage among India’s agricultural workforce, with a special focus on farmers and members of Farmer Producer Organisations (FPOs). The initiative was unveiled at the FPO Conclave 2025, hosted by Samunnati in Hyderabad on Wednesday, where PFRDA officials called on FPOs and agri-sector companies to help onboard farmers into the National Pension System (NPS) through digital enrollment.

Addressing the gathering, PFRDA Executive Director Mamta Rohit emphasised the importance of building a retirement safety net for India’s farming community, which represents 46 per cent of the nation’s working population. “Insurance covers the risk of death; pension covers your long life. So the seed of saving today to reap the pension tomorrow,” a PFRDA official told participants, urging households—particularly women—to adopt small but regular savings habits.

The authority highlighted the urgent need for pension inclusion, pointing out that India’s elderly population, currently 14 crore, is projected to double to 20 per cent of the population by 2050. With life expectancy now above 70 years, longer retirement years will require stronger income security. An estimated 40 per cent of India’s elderly continue to work out of financial necessity, underscoring the gap in social protection.

At the conclave, PFRDA showcased the benefits of NPS, noting its portability across states, cities and occupations. Accounts opened for children can continue through their academic and professional journeys, and a special provision, termed “NPS Vatsalya,” allows guardians to initiate pension savings for minors. The system, officials said, is tightly regulated with multiple fund managers, strict investment guidelines and central monitoring through agencies appointed via transparent processes. Digital onboarding options are already in place, enabling faster access for rural households and agri-businesses.

A live demonstration of the NPS calculator, based on a Rs5,000 monthly contribution, was presented to illustrate how compounding builds significant retirement wealth over time. Officials urged FPOs to integrate NPS as an additional member service alongside market, finance and technology support. Families were also encouraged to prioritise pension accounts for women, given their longer life expectancy and higher risk of financial insecurity in old age.

PFRDA reaffirmed its statutory mandate as the regulator of NPS and other pension schemes, including the Atal Pension Yojana, with crores of existing subscribers and significant assets under management. The session closed with an invitation to FPOs and agri-companies to attend a follow-up workshop for deeper product training and onboarding guidance.

“We’re here to he lp secure retirements for millions in agriculture—individual prosperity powering national development,” the PFRDA official Mamta concluded.