According to reports, India has increased its ranking to 32nd position in the Melbourne Mercer Global Pension Index (MMGPI) 2019. India’s score rose by 1.2 points from 44.6 to 45.8 in 2019.
The MMGPI ranks a total of 37 countries based on how well each country provides its citizens with retirement and pension benefits across various income groups.
Earlier in 2018, India was ranked 33rd out of 34 countries in the MMGPI. Thanks to the development in all the three sub-indices, i.e. integrity, sustainability and adequacy, India’s index improved considerably over the last year.
Improvement across various segments such as retirement management, net household savings, advancement in the private pension plans also play a significant role in increasing India’s ranking.
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The index report pointed out that the improvements in the pension system will present themselves with time considering the unorganised sector, which contributes to a significant portion of the total workforce.
The report also added that the pension schemes introduced by the government such as the Atal Pension Yojana (APY), PM Karam Yogi Maan-Dhaan Scheme, PM Kisan Pension Yojan (PM-KMY) among others have been able to cover most of the workforce in the unorganised sector.
Of the 37 countries valued in the MMGPI, the 1st position was held by the Netherlands with an index value of 81.0. On the other hand, Thailand was placed the last with an index value of 39.4.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
Abbreviation is the name of the game – SIP, NPS, ELSS, KTM, and OMR.
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