Pension system in India improves, even if marginally; know more

In a major achievement for growing country like India, it has been ranked 28 out of the 30 countries in a review in the Melbourne Mercer Global Pension Index 2017. Denmark emerged topper for the sixth straight year in the list.

As per media reports, India’s overall index value has increased from 43.4 in 2016 to 44.9 in 2017 and its pension system is found to be more sustainable than that of Poland, Germany, France, Japan, Italy, Austria, Brazil, China and Argentina. India’s position in sub-index value under sustainability increased from 40.9 to 43.8 in 2017.

“The increase in value under the integrity sub-index from 53.4 to 55.1 is a reflection of Government of India’s continued efforts to improve the transparency and member experience in various schemes,” Preeti Chandrashekhar, India Business Leader – Retirement, Health and Benefits, Mercer said Chandrashekhar further said, “The extension of pension benefits to the unorganised sector and schemes like Pradhan Mantri Vaya Vandana Yojana (PMVVY), a simple scheme with assured pension of 8 per cent which will provide some amount of protection to elderly persons aged 60 years and above against interest rate risk as a result of uncertain market conditions, are some steps in the right direction…”

Moreover, government of India and PFRDA (the pension regulator) have also provided much required impetus and thrust in encouraging participation in the National Pension System both in the organised and unorganised sector by its sustained campaigns and tax incentives.

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