A brief history of why the National Pension Scheme was created:
The Forgotten Population
The aged were not considered relevant
People spent a small time in retirement – the gap between the retirement age to the living time was not much.
They constitute the invisible population, financially dependant and passive in the economic process – and not vocal
We need to remember that we will all go through that phase, so let us be prepared
The Pension Coverage
Pension is synonymous with the formal sector employment
Only the Governmental sector has a big population which gets an ‘indexed’ pension
The non formal sector has no pension coverage
The Pension Debate
The pension debate is limited to pension in formal sector
Non formal sector has willingness and capacity to invest
Surplus income saving combats old age vulnerability
When security is the ability to work, old age and ill health result in abject poverty
The Longevity versus Savings Debate
To those outside formal sector, old age security is available through limited voluntary savings
The extent of the savings available and longevity decides the quality of life in old age.
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