In India we believe in certain things.

• bank deposits are the safest investment instruments
• Lic, ppf, etc. will pay on the due date
• Post office cannot default
• If you are a Central Gov pension holder, it cannot fail

I seriously do not want to comment on any of the above. It is too controversial and people do not like the truth. I wrote something on OROP and I am not sure that people liked it.

ManMohan Singh took a brave decision in 2004 to introduce NPS and thus the indexed pensions ceased to exist on that day except of course for the armed forces.

So if you are a government servant who has retired in 2018 (your age of 60 years) and live till your age of 102 or your spouse’s age of 105, you assume that you will get a pension for the rest of your lives. Right?

Well based on past events this seems to be a fair assumption.

If the pension starts eating into the corpus of the government, will the gov put a cap on the amount allocated to pension?

Will they look at your IT return and say “since your spouse is earning so much….we are restricting your pension?

Will they cap the upper limit of the pension?

Will they shut down CGHS and ESI?

Seriously I do not have the answers.

I am saying see what has happened in the USA. I have been hearing that the Social Security system will fail in 2022 or 2023. We do not know.

In India we are afraid to talk about it. We remain silent and hope it will go away.

I have not heard Narendra Modi or any of his cabinet talk about Retirement, pension, old age homes, geriatric care,

read on

https://www.wsj.com/articles/the-social-security-trust-fund-goes-bust-1528411768?mod=e2fb