Banerjee, Manoshij and Abdulla. Mohammed Shahid
Does the Atal pension Yojana use ‘nudge theory’ to drive up enrolments? - Economic & Political Weekly - 61(7), Feb 14, 2026: p.23-26
The auto-enrolment feature of India’s Atal Pension Yojana is critically examined. The application of “nudge theory” is analysed in APY in comparison with successful pension schemes globally and three key divergences are identified: misaligned incentives, reliance on paper-based rather than digital enrolment, and cumbersome opt-out procedures. The article argues that APY’s auto-enrolment mechanism substantially departs from established best practices in behavioural economics and may result in non-consensual enrolment and retention. It concludes that the scheme reflects a misapplication of nudge theory and underscores the need to reassess its enrolment and exit design to ensure ethical implementation and enhanced pension coverage in India.-Reproduced
https://www.epw.in/journal/2026/7/commentary/does-atal-pension-yojana-use-nudge-theory-drive.html
Does the Atal pension Yojana use ‘nudge theory’ to drive up enrolments? - Economic & Political Weekly - 61(7), Feb 14, 2026: p.23-26
The auto-enrolment feature of India’s Atal Pension Yojana is critically examined. The application of “nudge theory” is analysed in APY in comparison with successful pension schemes globally and three key divergences are identified: misaligned incentives, reliance on paper-based rather than digital enrolment, and cumbersome opt-out procedures. The article argues that APY’s auto-enrolment mechanism substantially departs from established best practices in behavioural economics and may result in non-consensual enrolment and retention. It concludes that the scheme reflects a misapplication of nudge theory and underscores the need to reassess its enrolment and exit design to ensure ethical implementation and enhanced pension coverage in India.-Reproduced
https://www.epw.in/journal/2026/7/commentary/does-atal-pension-yojana-use-nudge-theory-drive.html