October 2023
17Oct

The silver lining in India’s imminent ageing problem

India’s youthful population is often described as a key strength of the economy. India is among the youngest emerging market nations, and will remain so in the near future—a demographic dividend that makes it an attractive investment destination. According to the United Nations, a country is considered to be “ageing" if the share of the population over the age of 65 is more than 7%, “aged" when the share exceeds 14%, and “super-aged" when it crosses 20%. India will...

October 17, 2023
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September 2023
26Sep

India. Around 90% regret not saving early for retirement, shows study

It is important to start saving early for retirement. In a recently-concluded study, it was revealed that a vast majority of people (90%) wish they had initiated retirement savings earlier, underscoring the significance of proactive financial planning. The study also revealed that Western India shows the least sense of security towards a peaceful retirement life compared to other zones. The India Retirement Index Study (IRIS), carried out by Max Life Insurance in partnership with Kantar, also revealed deep insights into the...

September 26, 2023
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22Sep

Canada pension funds stay committed to India investments amid diplomatic tensions

Amid India-Canada diplomatic tensions, Canadian pension funds have retained their substantial Indian equity holdings, demonstrating a steadfast long-term approach. Market experts believe that Canadian investors continue to show commitment to India, minimising the influence of current tensions on their investments. "Pension funds, known for their long-term investment perspective, typically do not react hastily to such geopolitical events. They maintain a strategic outlook and are likely to wait for developments before making any major adjustments. There's a reasonable expectation that this...

September 22, 2023
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July 2023
23Jul

Accounting for Pension and Post-Retirement Benefits in Companies

By Anetha Kumanireng, Reniati Marimpan & Veronika Tombi Layuk After leaving work, retirement is an importan phase in one's life. Companies must prepare for retirement well. One of the elements that must be considered is the accounting for pensions and post-retirement benefits. This article will discuss the importance of this accounting for companies. Source @SSRN

July 23, 2023
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June 2023
28Jun

India. Balancing Old and New Pension Systems: Neglected Pensioners and PFRDA’s Role

The ongoing debate surrounding the Old Pension Scheme (OPS) and the New Pension System (NPS) must not overlook the most affected group – the pensioners. While political parties, economists, and think tanks engage in discussions about the advantages and risks of each system, elderly individuals relying on these pensions continue to be forgotten. The OPS has a long history dating back to British Colonial Rule in India, initially introduced in 1881. It has evolved over the years, extending its coverage...

June 28, 2023
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May 2023
17May

The whys and wherefores of pension adequacy in India

While a pension of 50% of last salary may seem reasonable in view of the fact that some expenses such as on commuting, housing and dining get reduced after retirement, other expenses, such as on health care, travelling and insurance increase and offset savings to some extent. Some financial planners speak of the 80% rule, which states that one needs 80% of last salary to have a reasonably comfortable life after retirement. There is some merit in this argument There...

May 17, 2023
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12May

Social Security of Labour in India

By Ishita Arora The social security of labour in India is a critical issue that needs to be addressed. The country's labour force is massive, and ensuring their protection and well-being is crucial to their quality of life and the country's economic development. This research paper aims to explore the current state of social security for workers in India, including policies and programs aimed at providing protection and support to individuals and families against social and economic risks such as...

May 12, 2023
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09May

India’s pension scheme returns ‘exceedingly good’ versus benchmarks – regulator

India's national pension scheme offers "exceedingly good" returns of 9-12%, compared to most benchmarks, a top official at the pension fund regulator said on Tuesday. The National Pension Scheme, adopted in 2004, has recently come under criticism for inadequate returns, leading to a few state governments reverting to an earlier pension plan considered fiscally unviable. Following this, the federal government set up a committee to review the country's pension system. "The equity scheme, since inception, has given an annual return of close...

May 9, 2023
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April 2023
24Apr

India. National Pension System likely to get a facelift

The recently-formed committee on the National Pension System (NPS) will review the nearly two-decade-old scheme with an intent to enable it to provide higher pensionary benefits, with higher contributions from both the government and employees. According to a source, the panel, headed by finance secretary TV Somanathan, might suggest guaranteeing a certain pension similar to the Old Pension Scheme (OPS), but without reverting to the non-contributory system. The proposal is to usher in the guaranteed component “in a graded manner”,...

April 24, 2023
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20Apr

‘Big news’ is India’s population growth is below replacement level: UN expert

While India's population at 1.4 billion has surpassed that of China's, the "latest big news" is that the population growth is below the replacement fertility rate in India and it has a "window of opportunity", according to Rachel Snow, the lead demographer of the UN Population Fund (UNFPA). The continued trajectory for India is that while the young population entering the reproductive phase will boost overall fertility, "given the fertility pattern already evident, we can start to anticipate the decline,...

April 20, 2023
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