October 2025

The Political Economy of Gig Pensions

Since 1991, the limited gains attained by working people in terms of social security, including pensions, have been whittled down by the joint actions of the Indian government and big business. Even government employees and teachers have been forcibly transitioned to the defined contribution-based National Pension System (NPS), where both the employee and the government make monthly contributions toward a retirement corpus whose terminal value is market-linked, from the defined benefit Old Pension Scheme (OPS). A small number of private...

The Paradox of Demographic Dividend: Ageing Population and the Gig Economy

As I travel from my office in Dal Gate towards Jawahar Nagar, in Srinagar, a 24-year-old food delivery rider parks his scooter in front of a coaching centre. He has just completed his third order of the morning and is checking his phone for the next one. His father, meanwhile, spent three decades as a government schoolteacher, drawing a steady salary and retiring with a pension that still sustains the family. The contrast could not be sharper: the father’s...

India. A new rival to mutual funds? NPS reform opens 100% equity, early-exit plans for seniors

The National Pension System (NPS) has entered a new chapter of flexibility and choice with the rollout of the Multiple Scheme Framework (MSF) by the Pension Fund Regulatory and Development Authority (PFRDA). The reform allows investors to align pension savings with personal financial goals — introducing multiple investment tiers, earlier exit options, and equity exposure of up to 100%. Under the MSF, non-government subscribers can now choose between low-, moderate-, and high-risk options, breaking away from the traditional uniform model. The...

September 2025

India’s gig economy expands rapidly, government steps up worker welfare measures

India’s fast-growing gig and platform workforce is reshaping the world of work, creating new opportunities in urban and semi-urban centres while also posing significant challenges around social security and worker protection. With its half-a-billion-strong labour force, the world’s youngest demographic profile, rapid urbanisation, and widespread smartphone penetration, the country is emerging as a global hub for gig-driven transformation, according to official data. The gig economy, broadly defined as a system where individuals earn outside traditional employer–employee relationships, has seen strong growth...

August 2025

India. Switching from UPS to NPS? Govt clears one-time window with strict eligibility rules

The Ministry of Finance has introduced a one-time, one-way switch option for Central Government employees currently enrolled under the Unified Pension Scheme (UPS), allowing them to move to the National Pension System (NPS). According to an official memorandum dated August 20, 2025, this facility is available to UPS subscribers up to one year before their superannuation or three months before voluntary retirement. Employees facing dismissal, removal, or disciplinary action will not be eligible. Once the switch is exercised, employees will no...

Analysis: The US$400 trillion global retirement gap

By Paul Mackintosh   In a recent discussion with the World Economic Forum (WEF), Yie-Hsin Hung, chief executive officer of State Street Investment Management, addressed the global retirement savings gap, estimated to have hit some US$50 trillion ten years ago and forecast to reach around $400 trillion by 2050. The US is expected to account for 33% of the $400 trillion, China, 30%, and India, 20%. In the US, those who are 45- 60 years old or Generation X save on average around...

India. Income Tax Bill 2025: From UPS benefits to commuted pension rules — top 5 things every pensioner must know

The Lok Sabha passed the revised Income Tax (No. 2) Bill, 2025 on Monday, August 11, a move towards replacing the six-decade-old Income Tax Act of 1961. Introduced by Finance Minister Nirmala Sitharaman in the Parliament, the bill aims to streamline and modernise the country’s tax framework. It will now move to the Rajya Sabha and, upon securing Presidential assent, become law. Out of the several provisions mentioned under the proposed bill, some key measures are specifically aimed at pensioners....

Boosting Retirement Income through Dynamic Withdrawals

By Ravi Saraogi Dynamic withdrawal strategies, extensively researched internationally, remain underexplored in India. This paper bridges this significant research gap by rigorously evaluating popular dynamic withdrawal methods using Indian data. Employing simulations based on historical equity, debt and inflation data from the Indian market, we compare 10 different adaptive and dynamic withdrawal strategies. The study demonstrates that dynamic strategies can improve withdrawals and sustainability compared to static withdrawal methods. However, this improvement comes at a significant cost of volatility in...

July 2025

Atal Pension Yojana and India’s Social Security Ambitions

In a country where nearly 90% of the workforce belongs to the unorganised sector, securing a dignified life post-retirement has long been a challenge. Most daily wage workers, small business owners, and informal employees do not have access to pensions, gratuity, or provident fund mechanisms that salaried employees in the formal sector enjoy. Recognising this enormous gap in social protection, the Government of India launched the Atal Pension Yojana (APY) in 2015, aiming to democratize retirement benefits for the underserved. What began...

June 2025

India Gears Up To Launch Landmark Social Security Scheme For Gig Workers

In a major step toward formalising protection for India’s growing gig economy, the government is preparing to roll out a dedicated social security scheme for gig and platform workers under the Pradhan Mantri Jan Arogya Yojana (PM-JAY)—the world’s largest publicly funded health insurance program. The announcement, made as part of the Union Budget 2025, marks a watershed moment for the country’s informal workforce, which has long remained outside the ambit of structured welfare systems. PM-JAY, also known as Ayushman Bharat, was...