Allocate more of you pension money to equities for better returns

But it should be balanced and choice should be given to subscribers

Should pension subscribers be allowed to invest more in equities? A recent report by Crisil and the Pension Fund Regulatory and Development Authority (PFRDA), titled “Financial security for India’s elderly,’’ suggests so. The report identifies problems of the pension sector as low coverage, low contributions and persistency. 

For the unorganised sector, the report suggests that the government can look at providing a) flexible payment and withdrawal options, b) monetary incentives for the lower income strata, c) exclusive pension schemes for women, and d) improved financial literacy and intermediation.
 

For the organised sector, the report suggests improving the asset allocation. “The