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Pension Bazaar Aims to Revolutionize Retirement Planning Like Policy Bazaar Did for Insurance

The Pension Fund Regulatory and Development Authority (PFRDA) has partnered with PB Fintech to launch Pensionbazaar.com, a platform designed to dramatically increase public adoption of pension plans. PFRDA Chairperson Sivasubramanian Ramann compared its potential impact to Policy Bazaar's disruption of the insurance sector, emphasizing safety and a user-friendly digital experience. In a parallel move, PFRDA has formed a committee chaired by MS Sahoo to develop guidelines for introducing assured minimum return schemes under the National Pension System. This initiative aims to transition the pension sector from a contribution build-up phase to an income generation phase for retirees.

Key Points: PFRDA Launches Pension Bazaar to Boost NPS Adoption

  • Digital platform for pension products
  • Aims to expand coverage beyond govt employees
  • Committee formed for assured payout schemes
  • Access to top 250 NSE/BSE stocks
  • Phygital distribution model for accessibility
2 min read

Pension Bazaar will boost adoption like Policy Bazaar did for insurance: PFRDA Chief

PFRDA partners with PB Fintech to launch Pensionbazaar.com, a digital platform to expand pension access and introduce assured payout schemes.

"Pension Bazaar is an assurance... If we can also provide such a platform to people in pension, then the adoption rate will be increased. - Sivasubramanian Ramann"

By Shailesh Yadav, New Delhi, January 13

The Pension Fund Regulatory and Development Authority has joined forces with PB Fintech to launch a major initiative aimed at expanding pension coverage beyond government employees through the Pensionbazaar.com platform, marking a significant shift in India's retirement planning landscape.

PFRDA Chairperson Sivasubramanian Ramann announced the regulator's strategic pivot toward the non-government segment, emphasising flexible regulations and a phygital distribution model to make pension products more accessible to the general public.

"Pension Bazaar is an assurance like Policy Bazaar has given the option to people that, with a click on mobile, they can buy any insurance policy. If we can also provide such a platform to people in pension, then the adoption rate will be increased," Ramann told ANI.

The platform will enable pension funds to partner with Pensionbazaar.com and launch their products, giving people the option to choose from multiple funds based on their preferences. The initiative permits individuals aged 85 or younger to purchase pension policies.

"I can assure that investment through Pension Bazaar will be safe," Ramann emphasised, noting that the regulator conducts quarterly review meetings to ensure pension funds don't misallocate investments. Investors will have access to the top 250 stocks listed on NSE and BSE through the platform.

In a significant development, PFRDA has constituted a high-level committee to formulate guidelines for assured payouts under the National Pension System (NPS). The committee will be chaired by MS Sahoo, founder of Dr. Sahoo Regulatory Chambers and former Chairperson of the Insolvency and Bankruptcy Board of India (IBBI).

"Our act says that there should be a minimum return scheme. There were some efforts in the past to have such a scheme but they were not successful," Ramann explained. "We have to try and make such a scheme which will require some kind of market-based guarantee. We need to see which entity can give us such a guarantee."

The committee will deliberate on bringing guaranteed products within the pension framework, after which pension funds will assess the feasibility of implementation.

The PFRDA chief highlighted the sector's evolution, stating that while the industry is currently in the contribution build-up phase, the goal is to transition toward the income generation phase.

"Every pension fund wants to give their best scheme to customers," Ramann said, underlining the competitive environment that the new platform aims to foster.

- ANI

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Reader Comments

S
Shreya B
The idea is good, but I'm skeptical about the "assured payout" committee. We've heard promises of minimum returns before. What's different this time? The success will depend entirely on the guarantee mechanism. Without a solid, trustworthy guarantee, people will still prefer PPF or fixed deposits.
A
Aman W
Finally! Making pension products accessible beyond govt employees is crucial for our country's financial security. My parents relied entirely on me because they had no formal pension. This platform could help break that cycle for the next generation. Hope the UI is as simple as they promise.
P
Priyanka N
Access to top 250 stocks is interesting, but also risky for a pension product. The quarterly reviews by PFRDA are reassuring, but will the common person understand the risk? They need to ensure very clear communication—not everyone is a market expert. Financial literacy campaigns must go hand-in-hand.
D
David E
As someone who has worked in both India and the US, I see the huge gap in private pension coverage here. A platform like this that aggregates options and builds trust is exactly what's needed to kickstart a savings culture. The committee on assured payouts is the most critical piece.
K
Kavitha C
Good step, but what about the existing NPS subscribers? Will this platform help us compare and switch funds more easily? The current process is quite cumbersome. Also, allowing purchase up to age 85 is great for supporting our elderly parents. 👵👴

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