MCGPI 2023 unveils enhancements in India's pension system. Details here

livemint.com:

employee provident fund (EPFO), and predominantly DC-based supplementary employer-managed pension schemes. Government initiatives have been introduced as part of a universal social security program aimed at benefiting the unorganized sector.

Preeti Chandrashekhar, India Business Leader, Mercer – Health and Wealth, stated “Changes in workforce dynamics, employment, and family patterns have brought formal sources of retirement to the forefront. While there is improvement in the net pension replacement rate and participation in private pension plans, which is reflected in the value of Adequacy and Sustainability sub-indices, the coverage of the Indian workforce under private pension plans is still very low (6%).

Given that India does not have a mandated public pension plan with contributions linked to earnings that aim at replacing some pre-retirement income, a Social Security System that increases coverage of the unorganised workforce, as well as the self-employed, would further improve the efficacy of the system." Chandrashekhar added, “There is a growing focus on making India a full pensionable society and the government has undertaken several measures towards this. Facilitating further participation in private pensions would encourage higher levels of private savings.

Focus on funding of gratuity plans, and improved communication in terms of disseminating information to the members would go a long way in improving the governance and overall index value. The results from this year’s Mercer CFA Institute Global Pension Index show that India’s pension system is slowly but firmly getting stronger, with more opportunity for improvements." “The rapid development of AI technology presents meaningful opportunities for pension