Regulator mulls tailor-made pensions

More choices: A labourer carrying a basket of papayas at a wholesale fruit and vegetable market in Mumbai. Pensioners in India generally have little flexibility in how their savings are invested as the regulator sought to control risks. — Reuters

NEW DELHI: India’s retirement fund regulator is planning to permit individual pension houses to launch tailor-made investment plans in what could be a major overhaul for the US$175bil industry, according to sources.

The Pension Fund Regulatory and Development Authority, or PFRDA, has held several rounds of discussions with fund managers on the potential change, which is aimed at boosting the growth of the pension industry in India, said the sources.