“INCLUSIVE FINANCE AND PENSION SCHEME ACCEPTANCE: A COMPARATIVE STUDY OF OPS, NPS AND UPS”

Abstract

Financial inclusion has emerged as a key driver of economic security and social equity, particularly in the context of retirement planning. This study examines the relationship between inclusive finance and the acceptance of pension schemes Old Pension Scheme (OPS), New Pension Scheme (NPS), and Unified Pension Scheme (UPS) in India, with a focus on Punjab. Based on secondary data drawn from government reports, policy documents, and published research, the paper explores how access to formal financial services, financial literacy, and digital banking influence individuals’ perceptions and preferences regarding pension schemes.

The findings suggest that higher levels of financial inclusion significantly enhance awareness and understanding of pension options, thereby shaping positive attitudes toward structured and contributory schemes like NPS and UPS. However, traditional preference for OPS persists due to perceived security and guaranteed benefits, especially among less financially included populations. The study also highlights the role of government initiatives such as Pradhan Mantri Jan Dhan Yojana and Atal Pension Yojana in expanding financial access and encouraging pension participation among marginalized groups.

Furthermore, the analysis reveals a gap between access and effective utilization of financial services, indicating that inclusion alone is not sufficient without adequate financial awareness. The paper concludes that strengthening financial literacy and digital inclusion can play a crucial role in improving acceptance and informed decision-making regarding pension schemes. These insights are valuable for policymakers aiming to design inclusive and sustainable pension systems in India.