This book deals with the pension of uncovered people in India, the informal or unorganized sector workers who contribute more than fifty percent of India’s total output. Until recently, these workers don’t get any old age security when they retire unlike those from the organized sector workers such as govt. employees or corporates. This book offers insights on the pension system of the informal sector in India.
The book is the outcome of field research of two years and the field research was conducted on MSME sector (a sub sector of unorganised sector) which provides the knowledge about the present state of the unorganised sector workers in MSMEs, their financial condition and stress, their work participation, their awareness level of old age financial security or pension and their financial behaviour regarding pension savings in India. This book empirically demonstrates a relationship between financial literacy and willingness to save for retirement benefits among the informal sector workers in India. Access to banking also improves the probability of retirement savings along with the gender and education.
By reading this book, readers can understand the demographic change India is going to witness within the next thirty years and its challenges to meet the longevity risk of these workers.
Author(s): Amlan Ghosh
Publisher: Routledge
Year: 2022
Language: English
Pages: 150
City: London
Cover
Half Title
Title Page
Copyright Page
Dedication
Table of Contents
List of figures
List of tables
Preface
Acknowledgements
List of abbreviations
1 Introduction
2 Informal Sector in India
2.1 Salient Characteristics of the Unorganised Sector and Employees
2.2 Broad Classification of the Unorganised Sector Employment
2.3 Gross Value Added and the Unorganised Sector in India
2.4 Worker Population Ratio in India
2.5 Worker Profile of Unorganised Sector Workers in Different Sectors of Economy
2.6 Employment Conditions of Workers in the Informal Sector
3 Pension in India
3.1 Pension System
3.2 Pension in India
3.3 Social Security System in India
3.3.1 The Civil Service Schemes
3.3.2 The Employee Provident Fund Organization (EPFO)
3.3.2.1 Development and Performance of EPFO
3.3.3 Public Sector Enterprises
3.3.4 Occupational Pension Scheme or Superannuation Scheme
3.3.5 Voluntary Tax-Advantaged Saving Schemes
3.3.6 Social Assistance Schemes
3.3.6.1 Central Schemes
3.3.6.2 State Schemes
3.3.7 Micro-Pension Schemes
3.4 Pension Reforms in India
3.4.1 Progress of NPS in India
3.4.2 Performance of NPS Funds in India
3.4.3 NPS and EPF
3.5 Schemes for the Unorganised Sector
3.5.1 Problems with the Schemes
3.5.2 Other Schemes
3.6 National Pension System (NPS) for Unorganised Sector
3.7 Other Contributory Schemes for Unorganised Sector
3.7.1 Pradhan Mantri Shram Yogi Maan-dhan Yojana (PM-SYM)
3.7.2 National Pension Scheme for the Traders and Self-Employed Persons Yojana
3.8 Existing Pension Coverage in India
3.9 India’s Demographic Transition
4 Research and Development in Pension Financial Literacy
4.1 Review of the Status of Research and Development in the Subject
4.2 Unorganised Sector and Poverty and Social Security
4.3 Financial Literacy and Retirement Planning
5 Primary Survey into Unorganised Sector Pension: A Case of MSMEs in India
5.1 MSME: Definition and Characteristics
5.2 Development of MSMEs in India
5.3 Contribution of MSMEs in India
5.4 Present Condition of MSMEs in India
5.5 Primary Survey into MSME Sector
5.5.1 Survey Management and Methodology
5.5.2 Sampling Procedure
5.5.3 Calculation of Sample Size
5.5.4 Collection of Responses
6 Understanding Financial Behaviour of MSME Workers
6.1 Overview of Sample Characteristics
6.2 Understanding the Financial Stress of MSME Workers
6.3 Awareness Level of the MSME Workers
6.4 Understanding the Financial Literacy of MSME Workers
6.5 Who Is Financially Illiterate? Who Is the Least Financially Literate?
6.6 Retirement Planning and Financial Literacy in India
6.7 Relationship between Pension Planning and Financial Literacy
7 Discussion and Policy Recommendation
7.1 Discussion and Conclusions
7.2 Policy Recommendation
7.3 Future Scope of Work
References
Annexure 1: The Questionnaire
Annexure 2: Distribution of Responses to Financial Literacy by Age, Gender, Education and Employment Status with All Four Questions (%)
Annexure 3: Demographic Characteristics of Sample Respondents
Index
