4 Retirement Pillars Have Serious Cracks

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The Contributing Editor has well presented his thoughts. Unfortunately, in reality, cracks are not to be seen in the Four Pillars programme, but they are visible in human nature and attitude to life. Individuals, whether they are in India or US or UK, prefer to postpone purchasing of/ contributing to life insurance and pensions. And every one is eager to put the blame on insurance and pension companies.Every one wants that their life shall be made colourful by others, government, insurers or employers.Citizen's right is to enjoy!! - without contributing.
In India Social Security is almost non existent except for specific governmental support in deserving cases.Government of India has introduced a New Pension Scheme fo its citizens from2004. Of course, a very good programme. Central government, State government and Public Sector Companies offer pension to their employees and PF Dept runs a PF linked pensions scheme for workers in the private sector. And any one can subscribe for life insurance copanies' annuities by paying appropriate contributions. A person like me has for retirment the employer' s pension and my own insurance and other savings. There could be pension from life insurance companies too provided I purchase annuity. People's choice of pension options are guided by societal values [V.N.S.Pillai-'Options under Annuities-a choice of values'-Pensions, an International Journal, Palgrave macmillan jan-April 2008].
Regarding the points raised on health cover employers could follow the good practice of the Life Insurance Corporation of India [LIC]who has made arrangement with general insurance companies for providing health cover for their retired employees on concessional terms. Moreover LIC engages its retired employees for training theri sales force. Such activities could be termed fourth Pillar.
This writer has 39 years experience in life insurance and pension administration, marketing, teaching and research. I have always maintained that planning should be such that pension shall be at least equal to last drawn salary.
V.N.S.Pillai, Principal, DTC
Life Insurance Corporation of India
Jeevan Jyoti 2nd Floor
Star Junction
Kottayam 686001
INDIA

V.N.S.Pillai 10:45AM February 01, 2011