As India charts its course toward Viksit Bharat 2047, a pillar of the vision is ensuring a financially secure retirement for every citizen. This also calls for a proactive and diversified approach to retirement planning, moving it from a distant afterthought to a central financial priority.
Bridge to Financial Freedom and Viksit Bharat, released by AMFI on August 22, serves as a crucial reminder of the same. The whitepaper highlights proposals for a Mutual Fund–Voluntary Retirement Account or a MF-VRA scheme, modeled on the successful US 401(k) plan.
This new, voluntary, and employer-linked scheme, managed by mutual funds, aims to enhance pension penetration and provide tax incentives and portability. The MF-VRA is designed to be a flexible, portable, and transparent avenue for long-term wealth creation, according to AMFI.
The scheme allows for voluntary participation with optional employer sponsorship and provide crucial tax incentives to encourage disciplined, systematic investing. The scheme is designed to channel household savings into productive capital, by contributing directly to India's economic growth while safeguarding individual financial security.
This initiative is intended to bring the focus back on the simple yet powerful principle, start early, invest regularly, and stay the course.
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