Pension funds in Pakistan have grown sharply in recent years, with assets under management reaching Rs. 156 billion, while the sector’s assets have increased by 333 percent since January 2021, EFU Life CEO Muhammad Ali Ahmed said.

Speaking about Pakistan’s retirement system, Ahmed highlighted the country’s growing need for stronger pension coverage. Pakistan has a working-age population of 134.4 million, while 13.5 million people are now aged 60 or above.

However, a large share of the workforce remains outside formal pension arrangements. Around 72.1 percent of employment is in the informal sector, limiting access to structured retirement savings.

Ahmed said only 143,000 active accounts were registered under voluntary pension schemes as of December 2025, a very small number compared with Pakistan’s working-age population.

He called for wider coverage through government-backed, employer-sponsored and individual pension schemes.

Ahmed also said voluntary pension plans and insurance-based long-term savings could help improve retirement security. He stressed the need to expand retirement income options, including annuities and phased withdrawals, so people can better manage their finances after leaving the workforce.