Centre sets up high level forum for regulatory coordination, development of pension products
Demand for and expectations from pension products are increasing.
Centre has set up a high-level forum under the chairmanship of financial services secretary for regulatory co-ordination and developing pension products. It will have five secretaries, beside Chairman of SEBI, PFRDA, IRDAI and Deputy Governor of RBI among others as members.
A Finance Ministry notification has listed five issues for the consideration of the forum. These include regulatory consistency for greater transparency and predictability, empowering the subscribers through facilitation of portability, strengthening consumer protection and robust grievance redressal system, development of pension market through product development and advocacy, creation of awareness among subscribers towards pension as a financial product and any other matter relating to the regulatory coordination and development of pension products referred to by a member/ chairperson and considered prudent by the forum/ chairperson.
The forum will have secretaries from Economic Affairs, Corporate Affairs, Labour & Employment and Revenue as members. It will also have Chairperson, International Financial Services Centres Authority (IFSCA) and Central Provident Fund Commissioner, Employees’ Provident Fund Organisation as members.
The Forum shall have a sub-committee headed by the Joint Secretary of the Financial Services Department to ensure focused deliberations and follow-up on sectoral issues, regulatory harmonisation and policy initiatives relating to pensions, the notification added.
Demand for and expectations from pension products are increasing. A survey report by Grant Thronton Bharat found that 56 per cent of respondents expect to retire between 55 and 65 years. Interestingly, younger respondents show a growing desire for early retirement, with 43 per cent in the under-25 group aiming for retirement before 55. This group prioritises work-life balance and leisure over extended career spans. Over 55 per cent of respondents expect monthly pensions exceeding ₹1 lakh, but only 11 per cent are confident in their current savings.
“This mismatch signals a pressing need for realistic retirement planning and financial education. A large gap exists between expected pensions and actual savings, revealing low confidence in future financial security,” the report said.
There are expectations that pension funds may be allowed to look for newer avenues. Various reports, quoting officials, suggest that retirement fund managers met senior officials from the Pension Fund Regulatory and Development Authority (PFRDA) in a series of meetings late last month and requested permission to invest in gold ETFs (Exchange Traded Funds). It is expected that pension fund regulator will soon take a call on this.
The pensions funds, which collectively manage about ₹15.5 lakh crore are also looking for eased rules around real estate investment trusts and infrastructure trusts. Currently, those funds are treated as alternative assets, and subject to a rule capping them at 5 per cent of the pension’s overall investments.
The ask is the latest in a string of requests by the pension industry seeking more flexibility in how the funds can invest a growing pool of savings. Pension assets have more than tripled since the pandemic, driven by India’s economic growth and rising participation in the financial system, a report by Bloomberg said.
Published on August 28, 2025
