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The way forward for India's National Pension System

Author

Listed:
  • Renuka Sane

    (Indian Statistical Institute, New Delhi)

  • Susan Thomas

    (Indira Gandhi Institute of Development Research)

Abstract

This paper examines the existing implementation of the National Pension Scheme against the goals with which it was created. It finds that there are certain critical areas in which the NPS has deviated. These include multiplicity of schemes, lack of investment choice, low transparency of the system, and a lack of focus on keeping asset management fees low. These gaps are well understood and can be corrected with regulatory interventions. There remain other policy issues that need to be addressed. These include well designed payout policies, and occupational pension systems that will leverage the institutional development of the NPS to include the informalworkforce.

Suggested Citation

  • Renuka Sane & Susan Thomas, 2014. "The way forward for India's National Pension System," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-022, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2014-022
    as

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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2014-022.pdf
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    References listed on IDEAS

    as
    1. Santosh Anagol & Hugh Hoikwang Kim, 2012. "The Impact of Shrouded Fees: Evidence from a Natural Experiment in the Indian Mutual Funds Market," American Economic Review, American Economic Association, vol. 102(1), pages 576-593, February.
    2. Monika Halan & Renuka Sane & Susan Thomas, 2013. "Estimating losses to customers on account of mis-selling life insurance policies in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2013-007, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Santosh Anagol & Shawn Cole & Shayak Sarkar, 2012. "Understanding the Advice of Commissions-Motivated Agents: Evidence from the Indian Life Insurance Market," Harvard Business School Working Papers 12-055, Harvard Business School, revised Oct 2015.
    4. Monika Halan & Renuka Sane & Susan Thomas, 2014. "The case of the missing billions: estimating losses to customers due to mis-sold life insurance policies," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 17(4), pages 285-302, October.
    5. Monika Halan & Renuka Sane & Susan Thomas, 2014. "The case of the missing billions: estimating losses to customers due to mis-sold life insurance policies," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 17(4), pages 285-302, December.
    6. Pablo Antolín, 2008. "Policy Options for the Payout Phase," OECD Working Papers on Insurance and Private Pensions 25, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Investment choice; intermediation fees; intermediaries; distribution channels; pension payout; annuities; occupational pension systems;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

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