V Ananatha Nageswaran, Chief Economic Advisor
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VELANKANNI RAJ B
Chief Economic Advisor V Anantha Nageswaran on Tuesday said a “deep and well-governed” pension pool can contribute to the creation of a developed India by supporting growth-oriented investments while ensuring liability-aware returns for subscribers.
Addressing an event organised by Pension Fund Regulatory and Development Authority (PFRDA) here, he highlighted that pension funds globally have faced funding challenges, particularly in the past when low interest rates pushed investors towards riskier assets. “The funding gap has long plagued Western pension funds and narrowed somewhat as interest rates moved away from the zero-flow environment. However, a subtle risk has emerged,” he said.
Pension funds have increasingly moved towards assets that are risky, illiquid and sensitive to macroeconomic changes. “Gold is the clearest example, and for a country like ours, it carries balance of payments consequences that a domestic liability fund should really tackle,” he said.
short-term investors
Nageswaran also expressed concern over the growing dominance of short-term investors in financial markets, saying even traditionally long-horizon investors have seen their investment horizons shrink. Chasing higher returns at the cost of pension promises was a risk that pension systems cannot afford, he said. A developed nation should not be judged only by economic output but also by the financial security and dignity it provides to senior citizens, he added.
“Viksit Bharat is not just a number on a national income chart. A country can host high output and still leave its old people anxious. The truer measure of a developed society is whether security and dignity in old age are broadly shared,” he said.
He emphasised that building resilient pension structures today is imperative to shield a future aging population. He underscored that moving forward, the industry must solve steady, predictable post-retirement income streams alongside asset accumulation. Nageswaran further highlighted that achieving universal pension coverage, especially within the vast informal sector, requires absolute product simplicity, robust digital delivery and the preservation of long-term public trust.
Delivering the keynote address, S Ramann, Chairperson, PFRDA, observed that while the National Pension System (NPS) has successfully established a formidable framework for retirement savings, the subsequent challenge rests on optimising the decumulation phase.
He said the PFRDA-IAI (Institute of Actuaries of India) collaboration will foster research-led, flexible and easily understood financial instruments designed around consumer realities, ultimately encouraging consistent long-term financial security over short-term market speculation.
Published on June 30, 2026
