Mumbai: The Pension Fund regulatory authority is looking at inviting RFPs (Request for proposal) to induct more players in the system.
At present, the Indian market has eight private sector pension fund managers.
Along with more fund managers, the regulator is also brain-storming on improving marketing rights for fund managers.
Pension fund managers at the moment can only sell products, but cannot market or advertise their services.
By enabling marketing of such services, PFRDA believes that fund managers can better target and sell their products.
Speaking at a Pension/Insurance event, PFRDA's Chairman Hemant Contractor explained reporters, "there has been [a] demand from pension fund managers to allow them to do marketing. We are open to the idea and the proposal will be taken up at the next board meeting,"
Underlining the need to save for the old age, Contractor said the number of people above 60 will more than double to 300 million by 2050 from 130 million now, posing a big social challenge to provide for their care, if they are not saving for their old age.
According to contractor, subscriptions to pension schemes grew by 37% in FY18, but only 15% of working population of over 500 million remain covered under pension schemes through the public sector EPFO and NPS. For The unorganised sector, only 2-3% employees remained covered under various pension schemes, mainly NPS.
Of this, the NPS corpus touched Rs 2.61 trillion last fiscal and is expected to touch Rs 2.8 trillion this year, added Contractor.
On the Atal pension scheme, he said subscriber base touched 11.1 million and he hoped to add 5 million more in the current year and the NPS base to grow at over 30% this fiscal from around 23 million last year.
The government is providing a monthly pension of Rs 200 to 25 million under the Indira Gandhi Pension Yojana with an outlay of Rs 15,000 crore per annum now, Contractor said.
Nilesh Sathe, member (life), with the IRDAI (Insurance Regulatory and Development Authority of India), called for allowing savers to draw down on any time, a provision which does not exist now and found fault with locking up funds in annuities without allowing withdrawal.