Pension reform modules that take care of the changing demographic profile of a population have put forth a number of suggestions. The accepted defined benefit pension system, which was the broader goal of a welfare state, is slowly giving way to the defined contribution system where risk is borne by the final beneficiaries. This paper, bringing out the many shortcomings of the New Pension System in India, examines the need to include the default option in the scheme. The default option is a necessity to make the dc system more acceptable and successful. A number of countries have this option but not India. A model portfolio is also proposed.
