PFRDA'S BLUEPRINT SHIFTS FOCUS FROM SAVINGS TO INCOME

India is one of the youngest nations but is ageing fast. Within a few decades, it may have more senior citizens than the entire US population. This gives India a short window to prepare, and the growing focus on post-retirement income marks a shift from savings-led accumulation to income security.

- KULIN PATEL

The Pension Fund Regulatory and Development Authority (PFRDA), in a consultation paper released on 30 September, proposed three concepts for post-retirement decumulation. The idea is simple — focus on steady retirement income, not just account balances. For retirees, this can mean the difference between stability and uncertainty. National Pension System (NPS) subscribers have long flagged issues such as low annuity yields, no inflation protection, and market risks at retirement. The new proposals aim to address these gaps, drawing on global pension models and sound design principles.

From saving goals to income goals