A few weeks ago, the Indian government beat one of its hastiest retreats. It announced announced Livemint Govt rolls back move to cut small savings rates Read more deep interest rate cuts in small savings schemes on 31 March, only to roll everything back on the morning of 1 April. Media reports pointed to an early morning directive from the Prime Minister’s Office for the reversal. Finance Minister Nirmala Sitharaman called it an “oversight” “oversight” The Ken Small savings, big retreat Read more .
Bankrolling your old age
India’s ticking retirement fund time bomb
One in five Indians will hit the big 60 by 2050, but most of them are banking on their children for support instead of planning a retirement fund. With interest rates eroding in the face of inflation, time is running out for investors, young and old alike
India is facing a pension fund crisis; Indians are simply not putting enough money in their retirement kitty
The National Pension Scheme has made some headway with the issue. It has 42.4 million subscribers as of March 2020, but that’s not nearly enough
Low interest rates, exacerbated by the pandemic, and rising inflation, have meant lower returns for those investing in the fixed income category
Only way forward is discipline and diversification in investing, but Indian households are hobbled by a severe lack of financial literacy