The Pension Fund Regulatory and Development Authority (PFRDA) has announced plans to introduce new pension schemes aimed at expanding coverage among gig workers, MSMEs, Farmer Producer Organisations (FPOs), and Self-Help Groups (SHGs). The announcement was made by PFRDA Chairman S. Ramann at the Global Fintech Fest (GFF) 2025, where he outlined the regulator’s long-term roadmap to make pension savings more inclusive and accessible.
Expanding Pension Access Beyond Formal Employment
According to the chairman, the regulator is working to design schemes that cater to workers and enterprises traditionally excluded from formal pension systems. The focus will be on creating flexible, low-cost models that allow participants to invest and save for retirement over longer periods.
Ramann highlighted the regulator’s aim to reach at least 6 million gig workers initially, with the goal of scaling up to 20 million in the next decade. These efforts are part of a broader plan to strengthen India’s social security net by ensuring that unorganised and small-scale workers have sustained access to retirement savings options.
The regulator is also exploring inclusion of commodities within pension fund investment guidelines, following requests from various stakeholders. A committee is currently reviewing the proposal before final approval.
Enhancing Customer Experience and Flexibility
Addressing feedback from the National Pension System (NPS) community, Ramann revealed that the PFRDA has issued a consultation paper proposing alternatives to the existing mandatory 40% annuity rule, which many subscribers find restrictive. The regulator aims to introduce more flexible exit and annuity options to better meet customer expectations and encourage broader participation.
He also acknowledged that increasing penetration in the informal sector remains a challenging and resource-intensive task. To incentivize outreach, the PFRDA has implemented a Multiple Scheme Framework (MSF) offering additional incentives to pension funds and distributors that expand into underpenetrated regions.
Strengthening Financial Security for the Future
The PFRDA’s expansion strategy reflects a larger policy shift toward integrating India’s diverse workforce into formal financial systems. By targeting MSMEs and gig economy participants, the regulator seeks to balance innovation with financial inclusion — ensuring that millions of new-age workers have access to secure retirement options.
The move aligns with the government’s broader vision of universal social security coverage, leveraging fintech platforms and digital interfaces to reach unserved populations efficiently. As India’s workforce becomes increasingly dynamic and decentralised, the success of these new pension verticals will be crucial in shaping a more resilient and inclusive economy.