{"id":103193,"date":"2026-05-13T11:46:28","date_gmt":"2026-05-13T06:16:28","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=103193"},"modified":"2026-05-13T11:46:28","modified_gmt":"2026-05-13T06:16:28","slug":"old-age-pension-loses-value","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/old-age-pension-loses-value\/","title":{"rendered":"Centre\u2019s Old Age Pension Loses Value Due to Inflation"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>Old Age Pension Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A government-commissioned study submitted to the Union Ministry of Rural Development has found that the Centre\u2019s old age pension under the National Social Assistance Programme (NSAP) has lost nearly 45% of its real value since 2012 due to inflation.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Introduction<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A recent government-commissioned evaluation has highlighted the growing inadequacy of social security pensions provided under the NSAP.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to the study submitted to the Union Ministry of Rural Development, the Centre\u2019s contribution of Rs 200-500 per month toward pensions for elderly persons, widows, and persons with disabilities has remained unchanged since 2012, resulting in a sharp erosion of its real value due to inflation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report estimates that inflation has reduced the purchasing power of these pensions by nearly 45%, raising concerns about the effectiveness of India\u2019s social assistance framework in supporting vulnerable populations.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The study has recommended introducing an inflation-linked National Floor Pension to ensure minimum financial security across states.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>About the National Social Assistance Programme (NSAP)<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The NSAP is a <\/span><b>centrally sponsored social welfare scheme launched in 1995<\/b><span style=\"font-weight: 400;\"> to provide financial support to vulnerable sections of society living below the poverty line.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme operates under the Ministry of Rural Development and currently includes five sub-schemes:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Indira Gandhi National Old Age Pension Scheme (IGNOAPS)\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Indira Gandhi National Widow Pension Scheme (IGNWPS)\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Indira Gandhi National Disability Pension Scheme (IGNDPS)\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">National Family Benefit Scheme (NFBS)\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Annapurna Scheme\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The programme aims to ensure social protection and basic income support for elderly persons, widows, disabled individuals, and economically vulnerable families.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Existing Pension Structure Under NSAP<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-weight: 400;\">The pension amounts under NSAP were last revised in 2012. At present, the Centre provides:<\/span>\n<ul>\n<li><b>Under IGNOAPS:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Rs 200 per month for senior citizens aged 60-79 years\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Rs 500 per month for beneficiaries aged 80 years and above\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Under IGNWPS:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Rs 300 per month for widows aged 40-79 years\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Rs 500 per month for widows aged 80 years and above\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"2\"><b>Under IGNDPS:<\/b><\/li>\n<li><span style=\"font-weight: 400;\">Rs 300 per month for persons with disabilities aged 18\u201379 years\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Rs 500 per month for persons aged 80 years and above\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally, under the National Family Benefit Scheme (NFBS), a one-time assistance of Rs 20,000 is provided to families upon the death of the primary breadwinner.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Currently, the old age pension scheme reportedly covers more than 221 lakh beneficiaries, while over 67 lakh widows and around 8.8 lakh persons with disabilities receive support under the respective schemes.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>News Summary<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The evaluation report titled \u201cImpact Assessment and Evaluation of the National Social Assistance Program (NSAP)\u201d observed that the pension amounts have not kept pace with rising inflation and consumption expenditure.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to the study:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India\u2019s <strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/new-consumer-price-index\/\" target=\"_blank\">Consumer Price Index<\/a> <\/strong>(CPI) increased from 100 in 2012 to 191 in 2024\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">This reflects a cumulative inflation rise of nearly 91%\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A pension of Rs 200 in 2012 would need to increase to around Rs 382 to maintain the same purchasing power\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Similarly, Rs 500 should have increased to nearly Rs 955\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The report further noted that the real value of the pension has effectively declined by nearly 45% due to average annual inflation of around 5% between 2010 and 2024.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Adjusted to current CPI levels, the Rs 200 pension would now need to be approximately Rs 353 merely to preserve its earlier purchasing power.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Recommendations of the Study<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To address the declining value of social security pensions, the report recommended the introduction of a <\/span><b>National Floor Pension (NFP)<\/b><span style=\"font-weight: 400;\">, similar to the National Floor Level Minimum Wage framework.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The proposed NFP would:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Ensure a minimum pension level is uniform across all states\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Be linked to the Consumer Price Index (CPI)\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Automatically adjust with inflation\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Include annual revisions based on cost-of-living changes\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report also recommended that states should provide transparent and uniform top-ups over the central contribution to reduce regional disparities in pension benefits.\u00a0<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Performance of States Providing Higher Pension Top-Ups<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The study highlighted that states offering higher pension contributions in addition to the Centre\u2019s share demonstrated better social outcomes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">States such as Andhra Pradesh, Telangana and Haryana were found to have improved income stability and overall well-being among beneficiaries due to larger state-level pension top-ups.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This suggests that stronger state support can significantly improve the effectiveness of social assistance programmes and reduce financial vulnerability among the elderly and disadvantaged groups.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Challenges in India\u2019s Social Security Pension System<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li><b>Inadequate Pension Amounts: <\/b><span style=\"font-weight: 400;\">The current pension amounts are insufficient to meet rising living costs, healthcare expenses, and food inflation.<\/span><\/li>\n<li><b>Absence of Inflation Indexation: <\/b><span style=\"font-weight: 400;\">Unlike many welfare systems globally, NSAP pensions are not automatically revised according to inflation.<\/span><\/li>\n<li><b>Interstate Variations: <\/b><span style=\"font-weight: 400;\">Different states provide varying levels of top-ups, resulting in unequal social protection across India.<\/span><\/li>\n<li><b>Rising Elderly Population: <\/b><span style=\"font-weight: 400;\">India\u2019s ageing population is increasing rapidly, creating greater demand for social security and income support systems.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/india\/nsap-pension-inflation-impact-report-india-10685019\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/www.moneycontrol.com\/news\/india\/centre-s-unchanged-old-age-pension-since-2012-lost-nearly-half-its-value-to-inflation-says-govt-commissioned-study-13916800.html\" target=\"_blank\" rel=\"nofollow noopener\">Money Control<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A study has found that the Centre\u2019s old age pension under the National Social Assistance Programme has lost nearly 45% of its real value since 2012 due to inflation.<\/p>\n","protected":false},"author":21,"featured_media":103223,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,7509,22,59],"class_list":{"0":"post-103193","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-old-age-pension","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs-tag","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/103193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=103193"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/103193\/revisions"}],"predecessor-version":[{"id":103221,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/103193\/revisions\/103221"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/103223"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=103193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=103193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=103193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}