Deepak Mohanty, chairman of the Pension Fund Regulatory and Development Authority (PFRDA), talked about the urgency of integrating pension planning into financial strategies while speaking at the third edition of Outlook Money’s 40After40 Retirement Expo in Mumbai.
“A pension should be a part of every savings portfolio, just as essential ingredients are to a wholesome meal,” said, Mohanty.
Pensions are supposed to be treated as a non-negotiable part of financial planning and not just an optional add-on, especially when India is witnessing a shift in socio-economic realities.
He also touched upon four crucial drivers increasing the need for retirement planning - rising longevity, around 20.8 per cent of Indians will be over 60 by 2050, soaring dependency ratios, which are projected to jump from 18 per cent to 30 per cent by 2050, increasing healthcare costs, and evolving family structures that negatively impacted traditional support systems. These factors, he argued, needed proactive, long-term financial strategies to ensure a smooth transition to retirement.
