This refers to ‘Attractive over the long term’, May 4. In the absence of a social security net for those in the unorganised sector, Indians tend to save a lot –— indeed, our national savings rate is around 37 per cent. These savings are today parked in banks, post office savings, the stock markets, real estate and insurance schemes. The problem with all these schemes, however, is that they can be encashed any time and so may not necessarily help provide old-age security. The New Pension Scheme can change the psyche of those who need such social security and make them save for their retirement. The new pension scheme has the potential to become a huge success and it may even replace insurance as the preferred avenue for investment.
P Esakki Muthu, via email