Upgrade pension system: ADB

The Asian Development Bank today cautioned that India's ageing population could challenge the fiscal sustainability of the present pension system and said immediate priority should be given to improving the legal and regulatory framework for pension and insurance.

"Rapidly ageing population in many countries have challenged the fiscal sustainability of pension system based on the defined benefit principle. India is no exception," ADB chief economist and deputy country director Sudipto Mundle said at a seminar here.