Investor Presentaiton
10. Issues and Challenges
• Limited Coverage. (Around 0.7% of total Population)
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Increasing liabilities & Unlimited Liabilities (7.23% of revenue) Except
Provident Fund
Non-contributory, Non- Funded Liabilities for Gov. (Except Provident Fund)
Heavy Financial Burden to the Government.
(Long term burden due to increase in life expectancy)
Inadequate Schemes:
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Provident Fund,
Pension to Govt. Employees,
Elder citizen, Widow women, Disabled Persons etc.
Informal Economy: 90% peoples are not covered.
e.g. Agriculture, self employee, other professional.
(Less than 10% of total work force in corporate sector)
Low level of earnings & lack of saving capacity
Issues on - adequacy, coverage & sustainability of pension
➤ Low retirement age
Mostly Nepal Army 38 and Nepal Police 36 Civil Servants <58)
Unstable Interest rate and High Inflation
Mobilization/investment of retirement fund: Risk and Return
Lack of clear Pension Policy
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