Coverage, Adequacy, and Impact Social Assistance Pension to Ageing Population in India

By: Sabu Kottuvayil Thahzhakuniyil   Haripriya Gundimeda  

India’s Social Assistance Pension Scheme has played a vital role with the most vulnerable population of elders who constitute more than eight percent of the total population. The scheme aims to provide regular cash transfer to those segments of the population to alleviating chronic poverty and vulnerability. The IGNOAPS is a non-contributory and unfunded pension scheme that covers the elderly population who are 60 years and above and live below the poverty line. The present study focusses on a state-wise analysis of the performance of IGNOAPS in terms of its targeting efficiency, coverage, adequacy and the impact of elder populations. The study is based on the available evidence from two phases house-hold survey of Indian Human Development Surveys(IHDS), which was conducted in the years of 2005 and 2011-12. This paper provides statistical analysis on performance evaluation of these schemes in terms of its coverage which measure the targeting efficiency. The adequacy indicators in terms of per capita income and expenditure used to measure the impact on the elderly population’s lively hood. The Probit model is used to evaluate the impact on the various segments of the elderly population in terms of income. Issues of inadequate coverage, inadequacy in pension amount, and only small impact on household welfare are evident from the analysis but a gradual marginal increment in its coverage, adequacy welfare impact is also visible while in comparing the performance in the two periods.

Population Aging, Pension System, Social Security
Economic and Demographic Perspectives on Aging
Paper Presentation in a Themed Session

Sabu Kottuvayil Thahzhakuniyil

Indian Institute of Technology Bombay

Presently working as a Senior Research Scholar in Economics area specifically on Economics of Pension System in Department of HSS, Indian Institute of Technology Bombay. Prior that worked as Assistant Professor in Economics at SAFI Institute of Advanced Studies affiliated Institution under Calicut University in Kerala State in India. The area of interested are Social Security System, Macro Economics analysis especially in Public finance.

Haripriya Gundimeda

Faculty, IIT Bombay , India