Foreign firms eye up deregulated pensions sector

Foreign insurers, asset managers and banks are preparing to tap India’s retirement savings. On August 23 the Indian government cleared a plan that is a first step towards pension deregulation.

New government employees will move to a defined contribution pension system in January next year instead of the defined benefit scheme to which government employees currently contribute. The plan will be managed by private managers and will be open to the self-employed or those who work in the vast unorganized sector as well as company and government employees.