ALM Strategy and Insurance Market Opportunities
Macro opportunity: Retiral solutions
India's pension market is under-penetrated at
3%* of GDP
54.0
31.3
3.0
India
98.3
90.1
146.2
Improvements in life expectancy will lead to an average post
retirement period of 20 years
Life expectancy at age 60
20
19
17
18
18
17
16
15
Japan Hong Kong Canada
USA
Australia
Elderly population is expected to increase 2.5x by 2050
55
Ageing population
248
15%
95
161
7%
10%
58%
61%
59%
35%
1995-2000
2005-10
2015-20
2030-35E
■Males Females
Average household size has decreased from 4.6 in 2001 to 3.9 in 2018
Total Pension AUM is expected to grow to Rs 118 Tn by 2030 (about 1/4th
accounted by NPS)
Mandatory schemes to increase coverage for both unorganized and
organized sectors
2021
29%
2035
26%
2050
Age <20 Yrs
Age 20-64 Yrs
Age >65 Yrs
Number of people aged >60 years (In mn)
Source: OECD 2021, Milliman Asia Retirement Report 2017; Survey by NSSO, Ministry of statistics and Programme implementation Crisil PFRDA, Census of India, United Nations World
Populations Prospects Report (2022)
35
*
Comprising pension assets/funds
HDFC
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