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Pension Regulator Considers Easing Rules to Boost Retirement Savings
26 Aug
Summary
- Pension funds manage over $177 billion in assets
- Seeking permission to invest in gold ETFs and real estate trusts
- Regulator drafting new rules based on industry requests
As of August 2025, India's pension regulator, the Pension Fund Regulatory and Development Authority (PFRDA), is considering easing investment restrictions for the country's rapidly growing retirement savings pool. This comes after pension fund managers met with senior PFRDA officials last month and requested permission to invest in new asset classes.
The pension funds, which collectively manage around Rs 15.5 trillion ($177 billion) in assets, have asked the regulator to allow them to invest in gold exchange-traded funds (ETFs) and ease rules around real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Currently, these alternative assets are capped at 5% of a pension fund's overall investments.
The requests reflect the industry's push for more flexibility in managing the surge of retirement savings, which have more than tripled since the pandemic. India's economic growth and rising participation in the financial system have fueled this expansion of pension assets.
In recent months, pension managers have also sought easier rules on the tenor and rating of securities they can purchase, though the PFRDA is yet to decide on those changes. A senior PFRDA official declined to comment on the specific proposals under consideration.
