The pension system in Nepal is crucial for providing social security and financial stability to its elderly population. Nevertheless, this current system encounters substantial challenges such as demographic changes, insufficient funding, and operational inefficiencies. This abstract emphasizes a thorough proposal aimed at restructuring the Nepalese pension system to improve its sustainability and effectiveness. The suggested reform underscores a multifaceted strategy. Initially, it proposes a reassessment of pension eligibility criteria, progressively elevating the retirement age to accommodate growing life expectancies and alleviate pressure on pension funds. Additionally, the reform advocates transitioning from the existing pay-as-you-go (PAYG) system to a partially funded model, enabling judicious investment of pension funds for increased returns. This entails the creation of an autonomous pension fund management authority to guarantee transparency and accountability in investment choices. Moreover, the reform proposes the introduction of an automatic adjustment mechanism tying pension benefits to inflation and wage growth. This measure serves to prevent the erosion of pension values over time and preserves the purchasing power of retirees. Furthermore, the reform tackles the coverage issue by suggesting the expansion of pension benefits to workers in the informal sector, thereby extending the scope of social security. In conclusion, the abstract underscores the importance of a strong regulatory framework to govern the revitalized pension system. This framework would encompass oversight, risk management, and regular evaluations to guarantee the sustainability of the system and its adaptability to changing economic conditions.