ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Does Not India Need a Default Option in the New Pension System?

Pension reform modules that take care of the changing demographic profile of a population have put forth a number of suggestions. The accepted defined benefit pension system, which was the broader goal of a welfare state, is slowly giving way to the defined contribution system where risk is borne by the final beneficiaries. This paper, bringing out the many shortcomings of the New Pension System in India, examines the need to include the default option in the scheme. The default option is a necessity to make the dc system more acceptable and successful. A number of countries have this option but not India. A model portfolio is also proposed.

Life Insurance and the Macroeconomy

It has been observed that there is a significant relationship between the demand for life insurance and various macroeconomic variables. High growth of GDP induces an economic effect through higher per capita and disposable income and savings, which in turn create a favourable market demand for life insurance. On the other hand, life insurance also provides support to the capital market and savings data pertaining to Indian life insurance and macroeconomic variables broadly indicate a close relationship and interdependence between macroeconomic variables and life insurance demand.
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