• Pradhan Mantri Jan Dhan Yojana
  • Financial Inclusion
  • Pension Fund
  • Pensions
March 01, 2018

Security for seniors

Opportunities and challenges in creating an inclusive and sustainable pension system in India

Pension, the bedrock of socialsecurity globally


FPension helps people get assured income in oldage, allowing them access to essential services,including healthcare, for a life of dignity.


This is the reason pension planning has been atthe heart of social security, globally. Public socialsecurity expenditure on pensions and other nonhealthbenefits earmarked for older personsamounts on average to 3.3% of global grossdomestic product (GDP).


Europe leads in public social protection expenditure on pensions and other benefits, excluding health


Variations among regions are influenced bydifferences in the demographic structure of thepopulation. For instance, spends are higher inageing population areas such as Europe, comparedwith Asia and Africa, where the age mix is younger.


The break-up between public and private provisionsfor pension and social services also varies. Forinstance, while 166 out of 178 countries provide atleast one pension scheme through a combinationof contributory and non-contributory schemes,the remaining 12 provide only lump-sum benefitsthrough provident funds or similar programmes.