Pension Sakhis: Rural families to soon get a local guide for NPS and retirement planning

The government is planning to take pension awareness and retirement planning closer to rural households through a new community-based network of ‘Pension Sakhis’.

The Department of Rural Development (DoRD) and the Pension Fund Regulatory and Development Authority (PFRDA) have signed an MoU to expand pension awareness, enrolment and post-enrolment support across rural India, according to a release issued by the Ministry of Rural Development on Tuesday.

The initiative will leverage the women-led self-help group (SHG) network under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), including Banking Correspondent (BC) Sakhis and other trained community workers.

Why are Pension Sakhis being introduced?

For rural households, especially those dependent on agriculture, informal work and small businesses, income can be irregular. While banking access has improved, having a bank account does not necessarily mean that a household is adequately prepared for retirement.

Under the new initiative, Pension Sakhis will act as community-level facilitators, helping SHG members, rural women, Lakhpati Didis and other households understand pension and retirement-planning options, according to the release.

They will also help people with pension enrolment and understanding pension-related services, potentially making it easier for first-time participants to navigate formal retirement products.

How can this help rural investors plan for retirement?

The focus is not only on enrolment but also on financial awareness and informed decision-making. The ministry says rural citizens should receive clear information before making long-term financial decisions.

Rohit Kansal, Secretary, Department of Rural Development, said that rural households participating in the SHG movement have distinctive savings patterns, livelihood cycles and risk profiles. Therefore, social security must become an important part of the mission’s larger objective of sustainable prosperity, as noted in the release.

He emphasised that “social security is not only about protection against vulnerability; it is also about giving households the confidence and resilience to pursue sustained economic advancement”.

He further highlighted the importance of ensuring that rural citizens receive clear and transparent information so that they can make informed choices about their long-term financial security.

Will NPS be part of the outreach?

Yes. The initiative is expected to improve awareness and adoption of pension products, including the National Pension System (NPS).

Mamta Shankar, Whole-Time Member (Economics), PFRDA, highlighted the growing importance of retirement planning in the context of rising life expectancy and changing demographic patterns, according to the release.

She expressed hope that the partnership would substantially improve awareness and adoption of pension products, including the National Pension System (NPS), among rural households that remain outside formal retirement and social security mechanisms.

How will the government track pension enrolment?

The outreach will be monitored through digital dashboards and mobile- and web-based systems, including the Department’s LoKoS platform. This is intended to help institutions track enrolment, identify gaps, and monitor the delivery of pension-related services.

“The MoU brings together two complementary strengths: PFRDA’s expertise in pension regulation and retirement-security systems and DAY-NRLM’s unparalleled community reach through women’s collectives and trained grassroots cadres”, according to the release.

The broader objective is to move rural financial inclusion beyond simply providing access to banking towards informed participation, long-term savings and financial resilience.

Disclaimer: This is for informational purposes only. Please visit the official website for the latest updates.