Nirmala Sitharaman announces finance-led panel to review new pension scheme

The Finance Minister of India, Nirmala Sitharaman, has announced that a panel led by the Finance Secretary will review the New Pension Scheme (NPS) in India. This review is a welcome move for many women in India, who have long been neglected when it comes to financial planning and retirement security.

The NPS is a voluntary, defined contribution retirement savings scheme for government employees, which was extended to all citizens in 2009. However, due to relatively low returns and a lack of awareness, the scheme has not been able to attract enough subscribers, particularly women. The government has been trying to incentivize more people to join the scheme by providing tax benefits on contributions.

The panel will examine various aspects of the scheme, including its investment guidelines, fund performance, and subscriber grievances. This review could lead to changes that benefit women, who are often excluded from formal pension schemes and face a greater risk of poverty in old age. The panel will also explore ways to increase the scheme’s reach and popularity among citizens, which could result in greater retirement security for women.

The review is part of the government’s efforts to improve social security coverage in the country and ensure the financial well-being of its citizens, especially women. Women in India face various socio-economic challenges, including lower wages, fewer work opportunities, and limited access to financial services. Therefore, any initiative that aims to improve their financial security and independence is a step in the right direction.

Staff Reporter