The Department of Rural Development (DoRD) and the Pension Fund Regulatory and Development Authority (PFRDA) have signed a Memorandum of Understanding (MoU) to establish a community-based network of ‘Pension Sakhis’ aimed at expanding pension awareness and retirement security across rural India.

The initiative will leverage the extensive community network under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), including Banking Correspondent Sakhis and trained community resource persons. Pension Sakhis will provide rural households with information on pension and retirement planning, facilitate enrolment and offer post-enrolment assistance.

The women-led self-help group (SHG) network will be used to reach SHG members, rural women, Lakhpati Didis and other rural participants, particularly those with limited access to formal financial advice and retirement-planning services.

The partnership also aims to strengthen monitoring of pension outreach and enrolment through digital platforms, including the Department of Rural Development’s LoKoS system, enabling institutions to track progress and identify gaps in coverage.

The collaboration combines PFRDA’s expertise in pension regulation and retirement-security systems with the extensive grassroots reach of DAY-NRLM. The initiative is expected to encourage greater adoption of pension products, including the National Pension System (NPS), and promote long-term savings and financial resilience among rural households.

The move marks a broader shift in the rural financial inclusion agenda from access to banking services towards informed financial participation, retirement planning and long-term financial security.