Finance Minister's big announcement regarding women and gig workers, pension coverage may increase..

Finance Minister Nirmala Sitharaman on Wednesday called for further improvements to the National Pension System (NPS). She stated that the pension coverage of gig workers and those in the informal sector should be expanded. This requires easy onboarding, strong pension protection for women, and an emphasis on financial literacy in schools and colleges. At the NPS Day conference, she stated that recent reforms will address shortcomings in the pension system.

Pension Sakhi Suggestion
These reforms will improve both the demand and supply of pensions. She called for uniform contributions for fiscal stability, proper asset allocation, and inflation-linked benefits, ensuring reliable pensions even during economic fluctuations. She also suggested creating women as "Pension Sakhis" to raise awareness. Sitharaman stated that a strong pension system will increase household savings and ensure long-term capital utilization.

This will reduce the burden on families due to illness or lack of income in old age. He explained that NPS equity schemes have generated an average annual return of over 13% since inception, while corporate bond and government securities schemes have generated around 9%. According to UNPFA, by 2050, India's population over the age of 60 will comprise 20.8% of the total population, up from 10.5% in 2022.

The Finance Minister stated that retirement planning leads to self-reliance, which is the foundation of a self-reliant India. He stated that if you want a self-reliant India, you need self-reliant families. Chief Economic Advisor V. Anantha Nageswaran stated that the government is promoting savings through economic growth, employment, and rising incomes. Recent tax cuts and low inflation have increased disposable income, leading families to save more. He added that we need to remind the public of their responsibility as well as the importance of saving.

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