Foreign Investment in Indian Pension Plans

Pension schemes in India The present Congress Government in India wants to give nod to Foreign Investment in Indian Pension Funds. This proposes 49% investment in the Indian pension sector. In the absence of social security cover for the burgeoning country wide population only a miniscule 12% remain in the security net of a formal pension schemes in India. It is necessary to remember that a staggering 90% of the people in this country work in the unorganized sectors without any safety net for the old age. 50% of all the production in India comes from this unorganized sector therefore it is too crucial to ignore in the best of circumstances.

Read more
  • Peaceful Post-Retirement Life

  • Tax Free Regular Income

  • Wealth Generation to beat Inflation

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000

Get the best returns & make the most of your Golden years

+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

In keeping with the insecurities of the non-pensioned segment of Indian society, there is a need to reform the present pension structure and include the maximum number of people within this financial safety net. Moreover, these reforms are needed through a fast-track process. By mobilizing the household saving through mutual funds, pension funds, and insurance it is possible to use it for corporate investments, which in turn paves the way for expansive financial security that includes the maximum number of people who remain deprived presently.

However, this is better said than done since the pension sector is capital intensive in all regards, therefore it requires a huge capital inflow to make the process work, and bear fruit after a suitable gestation period.  This is where the need for Foreign Investment in Indian Pension Funds comes into play. It can provide the needed long term infrastructure support required for mobilization of savings from Indian household and its subsequent use in corporate investments.

It is interesting to note that 90% of the pension assets from all over the world come from Organization for Economic Cooperation and Development (OECD) countries and ½ of the total asset contribution comes from USA. Through FDI, pension fund global companies can now target the vast Indian market, which is full of possibilities and inexhaustible opportunities. Even if India is able to attract only 1% of the total funds from the global companies, it can raise the assets from the present 5% to as much as 17% in the coming times, which is no mean achievement by any standards.

Besides this obvious one, some of the other projected benefits from proposed FDI scenario include availability of pension product to private sector employees who until now have to depend upon largely insurance-based schemes for post retirement financial security. With the introduction of foreign investment, it is possible to make new competitive and user-friendly services and products for the use of consumers. Finally, FDI also hopes to reduce the fiscal stress on both state and union governments.

Even with so many proposed benefits, there is much speculation regarding the feasibility and real benefits associated with Foreign Investment in Indian Pension Funds, no wonder the debate still rages on!

Secure Your Retirement Today
Start Investing ₹6,000/month
Get Pension ₹60,000/month+
Including Life Cover
View Plan
+Standard T&A Applied
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Retirement Plans
Monthly Pension Plans
Higher Returns Than Fixed Deposit
Retirement Calculator
Retirement Calculator
How much do you need to save for retirement?
₹ 20,000
₹ 25,000
₹ 30,000
Monthly Expenses in 2022
Edit Done
Your expense go up every year by
Today 2022 Your expenses today in 2022, at the age of 34 Yrs
Your expenses in 2043, at the age of 55 Yrs
For a monthly pension of ₹77,300
you need to invest
₹14,300/month
Calculated as per past performance of 15%
View Plan Recalculate?

Pension plans articles

Recent Articles
Popular Articles
How to Get a 50K Pension Per Month?

15 Jun 2022

Retirement planning should form an essential part of your
Read more
NPS Premature Withdrawal

15 Jun 2022

The National Pension Scheme is the Central Government’s social
Read more
Get 30K Pension Per Month

15 Jun 2022

Planning retirement is extremely important and crucial these
Read more
Atal Pension Yojana Premium Chart

08 Jun 2022

Atal Pension Yojana (APY) is a government of India initiative to
Read more
Monthly Pension Scheme for Senior Citizens

02 Jun 2022

Retirement planning is paramount to creating a constant source
Read more
National Pension Scheme (NPS) – Govt Approved Pension Scheme
National Pension Scheme or NPS scheme is an investment cum pension plan launched by the Indian Government. This
Read more
NPS Calculator - National Pension Scheme Calculator Online
National Pension Scheme Calculator is an online tool, which allows the individual to calculate the estimated
Read more
Post Office NPS Calculator 2022
National Pension System is a scheme launched by the Government of India that offers stability to all Indian
Read more
Future Value of Annuity Due Formula
The future value of an annuity due is the value of consolidated payments at a date in the future, considering a
Read more
NPS Tier 2 Account Advantages and Disadvantages
NPS or the National Pension Scheme is an initiative taken by the Central Government that protects the holders'
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL