13 June, 2021

Conquest Of Dreams

Your pension will now hinge on the mercurial markets. Expect a surfeit of products, and a sure loss of security.

Madhu Kapparath
Conquest Of Dreams
For the retired and for those saving for retirement, the list of woes is long: falling interest rates (reduced by a third in the past five years), gyrating stock markets scaring the daylights out of risk-averse middle-class investors, high-profile mutual fund failures like uti's US-64 and mips. Then, there's the increasing unavailability of fixed deposits that give you fair-to-high returns. And don't forget the ever-declining bonus rates of life insurance endowment policies. So, where do you invest to ensure a decent retired life? Ask these questions of any financial expert and you will get replies that are, at best, unsatisfactory.

It is in this backdrop that the government has initiated pension reforms which will effectively come into force from July 1. The reforms will manifest themselves in the form of a new scheme that will cover new central government employees who have joined service from January 1, 2004. State governments might also get their new employees to subscribe to this scheme. The scheme will also be open for other people interested in investing in it. While...

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