Directions for the following 3 (Three) items:

Read the following passage and answer the items that follow. Your answers to these items should be based on the passage only.

Passage 1

A persistent issue with micro-pension schemes is their low uptake among the poor, who often have a strong urge to allocate limited funds toward immediate consumption. In this context, increasing participation can be achieved through behavioural interventions. These interventions could involve changing how information is presented, simplifying the enrolment process (for example, using UPI-enabled pension payments), and providing timely reminders. Young people in India may not feel an immediate need to secure an optimal pension plan. The old-age dependency ratio is about 15.7 per cent, which is significantly lower than in many Emerging Market Economies. However, this should not lead to complacency. The best time to repair a roof is when the sun is shining, not when it is raining.

21.The author's concluding analogy, "The best time to repair a roof is when the sun is shining, not when it is raining," rests on the crucial assumption that:

(a)India's current demographic advantage, characterized by a low old-age dependency ratio, will deteriorate in the near future.

(b)The socio-economic and political scenario in India is currently more conducive to implement widespread pension reforms than it is likely to be in the future.

(c)The potential future challenges related to old-age income security in India are predictable and can be effectively mitigated through timely, proactive measures.

(d)Young people in India will recognize the need for pension planning once they witness the challenges faced by an increasing elderly population.

Question

Directions for the following 3 (Three) items:

Read the following passage and answer the items that follow. Your answers to these items should be based on the passage only.

Passage 1

A persistent issue with micro-pension schemes is their low uptake among the poor, who often have a strong urge to allocate limited funds toward immediate consumption. In this context, increasing participation can be achieved through behavioural interventions. These interventions could involve changing how information is presented, simplifying the enrolment process (for example, using UPI-enabled pension payments), and providing timely reminders. Young people in India may not feel an immediate need to secure an optimal pension plan. The old-age dependency ratio is about 15.7 per cent, which is significantly lower than in many Emerging Market Economies. However, this should not lead to complacency. The best time to repair a roof is when the sun is shining, not when it is raining.

21.The author's concluding analogy, "The best time to repair a roof is when the sun is shining, not when it is raining," rests on the crucial assumption that:

(a)India's current demographic advantage, characterized by a low old-age dependency ratio, will deteriorate in the near future.

(b)The socio-economic and political scenario in India is currently more conducive to implement widespread pension reforms than it is likely to be in the future.

(c)The potential future challenges related to old-age income security in India are predictable and can be effectively mitigated through timely, proactive measures.

(d)Young people in India will recognize the need for pension planning once they witness the challenges faced by an increasing elderly population.

ONLiNE UPSC · Accepted Answer

Statement (a) is not correct: The analogy suggests proactive preparation. While a future increase in the dependency ratio is implied as a concern, the assumption is not about an "inevitable and rapid deterioration." The phrase "when the sun is shining" implies acting during a period of relative stability or opportunity, not necessarily just before an imminent and rapid collapse.

Statement (b) is not correct: The passage focuses on the need for pension planning and interventions due to low uptake and potential future dependency issues. It doesn't explicitly assume that the current socio-economic or political climate is uniquely favourable for reforms compared to the future. The analogy emphasizes the wisdom of early action or whenever the situation is best suited rather than the specific political conditions or current times.

Statement (c) is correct: The analogy compares pension planning to repairing a roof. Repairing a roof proactively (when the sun is shining) is effective because future rain (challenges) is a predictable event against which one can prepare. For this analogy to hold in the context of pensions, the author must assume that the future challenges of old-age income security are foreseeable to some extent and that timely interventions (like promoting micro-pensions) can effectively address or "repair" these future issues. Without this assumption of predictability and mitigability, proactive "repair" would be pointless.

Statement (d) is not correct: The passage explicitly states, "Young people in India may not feel an immediate need to secure an optimal pension plan." The analogy is a call for proactive policy and individual action precisely because this spontaneous recognition might not occur or might occur too late.

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