Only 5% of population currently under pension net, need to save more during young age: CEA Nageswaran

CEA Anantha Nageswaran

Chief Economic Advisor V. Anantha Nageswaran stressed on the need for saving for pension in the early years of life, while adding that despite the impressive gains made by the pension sector, only about 5 percent of the total population is covered under the NPS and Atal Pension Yojana (APY) combined.

While speaking at the NPS Diwas Conference on October 1, organised by the Pension Fund Regulatory & Development Authority (PFRDA), Nageswaran further emphasized that any efficient pension system should be sustainable and scalable along with a balance Asset Liability framework.

At the same event, PFRDA Chairperson Deepak Mohanty highlighted the ongoing transformation in India’s pension system and the need to build more inclusive, resilient structures that can address the needs of all citizens, particularly in the context of labour market mobility and the gig economy.

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Mohanty stressed upon the importance of integrating technological advancements into pension frameworks, making pension systems more accessible, efficient, and secure in the digital age.

The perspective of money – based on instant gratification in young needs to be changed, said NITI Aayog member V K Paul in his speech. The status of elderly are not homogenous across states, he said while adding that gender diversity of elderly is more inclined towards women and that widowed women are at 54 percent.

There is a need to create awareness of NPS and APY among the people, while specially reaching out to people in rural areas. And for this banks may play an important role, Paul added.

Policy makers also need to consider the aspect of health, socio economic welfare and digital inclusion while framing the policy, Paul said.