Pension players need to cope with changing regulations, says LIC MD

According to ASSOCHAM, about 300 million working population in India do not have a pension scheme

"Indian pension market players will have to cope with the speed of change in regulations," said V K Sharma, managing director of Life Insurance Corporation of India (LIC). He added pension products can become more attractive than financial products if service tax issues are resolved.

Speaking at the Indian Pension Fund Congress here on Friday, Sharma said while India is a young country at present, the average age would increase in the next 20 years. "This necessitates the need to have a pension scheme at a young age since the coverage of old-age schemes is very low.”

Sharma said adequate coverage will ensure retired persons can maintain their lifestyle at the desired levels. He added LIC has been able to serve one million-plus customers through its insurance and pension solutions in this space.

Associated Chambers of Commerce and Industry of India figures show about 300 million working population in India do not have a pension scheme.

Sharma also said that turning pension into a profitable situation will not be a cake-walk.

The Pension Fund Regulatory and Development Authority was recently given statutory powers by Parliament to act as a regulator for the pension sector, following which the regulator brought out guidelines for launching pension products and the returns required to be offered by these products.