The elderly will form 20% of India’s population by 2050. As a nation, we are not adequately prepared to address the financial challenges this ageing population profile will create, given the increased life expectancy and the rising costs of medical care. The Government should consider making withdrawals from pension schemes tax exempt along with an increase in exemption limits on pension contribution making these schemes an attractive investment opportunity. While on the one hand senior citizens will build a security net, on the other, the availability of long-tenure funding can fuel India’s infrastructure growth.
