India’s most ambitious pension scheme has had a slow start. Giving it the power of 401(K) is the way to rev it up
Four months have passed since India’s New Pension Scheme was rolled out to the public with a big bang and what a whimper it has been. Only 1,500 people have joined the scheme and the corpus
has touched a mere Rs. 2.5 crore. Early reports indicate three major shortcomings are holding back the scheme’s wider adoption: The tax liability on retirement, the limit of six in the choice of fund managers and the fact it is not an employer-sponsored scheme.
(This story appears in the 11 September, 2009 issue of Forbes India. To visit our Archives, click here.)