India needs to encourage households to commit a larger share of their savings to long-term pension products, Chief Economic Adviser V Anantha Nageswaran said, calling for simpler pension products and wider access.

Speaking virtually at an event marking NPS Diwas 2025-26, Nageswaran said Indian households have changed their saving patterns, with a sharp rise in market-linked investments, but pension savings have not increased at the same pace, according to ANI.

“The Indian saver has shown a willingness to accept market risk or so we would like to believe. What the saver has not yet done at scale is to commit savings for a longer tenure,” he said.

He cited Economic Survey data showing that the share of equity and mutual funds in annual household savings rose from about 2 per cent in 2011-12 to around 15 per cent in 2024-25, while the share of bank deposits fell from over 58 per cent to about 35 per cent.

Nageswaran said India’s total pension assets were about 17 per cent of GDP, against at least 80 per cent in OECD countries. He said technology and simpler products could help close the coverage gap, drawing a parallel with the UPI experience.