‘Pension Sakhis’ to Drive Wider Pension Inclusion in Rural Areas

The government is set to expand pension coverage and strengthen social security among rural households through a dedicated cadre of ‘Pension Sakhis’, following an agreement between the Department of Rural Development (DoRD) and the Pension Fund Regulatory and Development Authority (PFRDA).

Under the memorandum of understanding (MoU), the initiative will leverage the community network of the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), including Banking Correspondent (BC) Sakhis and other trained community resource persons.

These community workers will create awareness about pension schemes, support enrolment and provide pension-related assistance to Self Help Group (SHG) members, rural women, Lakhpati Didis and other underserved groups.

‘Pension Sakhis’ to strengthen financial literacy and inclusion

Rohit Kansal, Secretary, Ministry of Rural Development, said SHG members have distinct savings patterns, livelihood cycles and risk profiles, making social security an important part of inclusive rural development.

He stressed that pension awareness and financial literacy should be built around honesty, transparency and trust, while trained BC Sakhis and other financially literate community workers could play a key role in expanding pension coverage.

PFRDA Whole Time Member (Economics) Mamta Shankar highlighted the importance of retirement planning amid rising life expectancy and changing demographic trends. The partnership will promote pension products, including the National Pension System (NPS), among rural households with limited access to formal retirement and social security mechanisms.

The initiative will also use digital dashboards, mobile and web-based solutions, and unique identifier-based tracking through Central Record-keeping Agencies to monitor outreach, enrolment and performance.

The government expects the initiative to strengthen pension literacy, deepen financial inclusion and create a more inclusive and resilient social security system for rural communities across the country.