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The New Pension Scheme: New wine in completely new bottle
The new pension scheme has some innovative features. It is a long- term investment vehicle that will deepen our capital markets and make a much needed provision for self-funded old age social security net.
Want to buy live longer, Buy an annuity !!
The government is doing its bit to increase the return on the annuities by promising to exempt approved annuities from tax in the revised discussion draft on the DTC. This will benefit the richer annuity buyers since they may be in the taxable bracket.
If it's good, they will come
NPS is a good scheme but a tough sell if the return is not guaranteed. Such products need both wide publicity as well as reasonable incentives.