MUMBAI : The pension regulator has said there is a requirement for intermediaries to promote the National Pension Scheme as it is not inherently favoured by younger individuals.
“Intermediaries should aim to expand the subscriber base. Survey data suggests that even those financially capable of subscribing to the NPS are still not adequately covered. For instance, the inclusion of women is insufficient. Similarly, the adoption of NPS among professionals, small businesses, and the self-employed is comparatively low,” said Deepak Mohanty, chairman of the Pension Fund Regulatory and Development Authority (PFRDA). He made these remarks at a pension event in New Delhi recently. Mohanty mentioned that there is lower penetration among the self-employed and professionals, despite an exemption of up to 20% of their gross income (subject to a limit of Rs 1.5 lakh) by contribu ting to the NPS, along with the additional tax benefit of Rs 50,000. Furthermore, Mohanty highlighted that international experience indicates the necessity for more than one retirement scheme. With increasing lifespans, post-retirement income tends to be lower than expenditure.
According to Mohanty, there is a need for individual contributions, given the structure of the labour market in India. He stated, “Majority of the labour force needs to make provisions for post-retirement income during their working life.”
“Intermediaries should aim to expand the subscriber base. Survey data suggests that even those financially capable of subscribing to the NPS are still not adequately covered. For instance, the inclusion of women is insufficient. Similarly, the adoption of NPS among professionals, small businesses, and the self-employed is comparatively low,” said Deepak Mohanty, chairman of the Pension Fund Regulatory and Development Authority (PFRDA). He made these remarks at a pension event in New Delhi recently. Mohanty mentioned that there is lower penetration among the self-employed and professionals, despite an exemption of up to 20% of their gross income (subject to a limit of Rs 1.5 lakh) by contribu ting to the NPS, along with the additional tax benefit of Rs 50,000. Furthermore, Mohanty highlighted that international experience indicates the necessity for more than one retirement scheme. With increasing lifespans, post-retirement income tends to be lower than expenditure.
According to Mohanty, there is a need for individual contributions, given the structure of the labour market in India. He stated, “Majority of the labour force needs to make provisions for post-retirement income during their working life.”
