Chief Economic Advisor V. Anantha Nageswaran highlighted the significance of a robust pension pool in fostering a developed India through growth-oriented investments and secure returns for subscribers. Speaking at an event by the Pension Fund Regulatory and Development Authority (PFRDA), he underscored the pivotal role of pension funds in infrastructure development and India’s journey towards a developed nation by 2047.
Nageswaran stressed the importance of ensuring widespread security and dignity in old age as a true measure of societal development. He also pointed out the funding challenges faced by Western pension funds and the emerging risks associated with pursuing higher returns while jeopardizing pension commitments.
Moreover, PFRDA Chairperson S. Ramann announced the upcoming launch of the NPS Swasthya product, allowing health insurance companies to provide additional health cover to National Pension System (NPS) subscribers. This initiative aims to enhance the health insurance options available to NPS participants, with the PFRDA board already approving the product and outlining the standard operating procedure for implementation.
In a recent move, PFRDA introduced significant post-retirement options under India’s National Pension System (NPS), enabling retirees to receive periodic payouts from their corpus. The new framework includes a drawdown facility that permits subscribers to choose monthly, quarterly, or annual payouts from the lump-sum portion retained within NPS.
