How AI and digitalisation can make India's pension schemes more accessible and efficient

livemint.com:

India’s pension sector has historically been limited in scope, with coverage predominantly available to government employees and a small fraction of the private-sector workforce. In the past, pension services were riddled with bureaucratic challenges, requiring beneficiaries to fill in complex paperwork, endure long delays, and often travel to distant government offices to collect their pensions. These barriers were particularly significant for India’s rural population, which struggled to access pension schemes due to limited infrastructure and awareness.

India’s population today has surpassed 1.4 billion (World Bank, 2023). While a significant portion of the population remains young, with those aged 15-29 comprising around 27% (UNFPA, 2023), the number of senior citizens has also surged to more than 10% of the population, or roughly 140 million people (Ministry of Statistics, 2023).

Also read: The National Pension System was tweaked for flexibility but awaits tax clarity

Current demographic trends, such as the shift from joint to nuclear families, emphasise the need for a robust pension system as projections suggest 20.8% of the population will be over 60 by 2050 (UN World Population Prospects, 2022). Digitalisation and artificial intelligence (AI) will play a pivotal role in transforming this system to improve accessibility and sustainability.

The advent of digitalisation has revolutionised the accessibility and administration of pension schemes in India. Digital platforms such as eNPS and the unified portal have simplified pension management, reducing the administrative burden and increasing transparency. The Pension Fund Regulatory and Development Authority (PFRDA) reported more than five crore National Pension