Created on 19th February 2023
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Current Problem :
In India -
The adoption of pension schemes in India is low, with pension saturation only at 15% of the country's GDP, compared to 100% or even 200% in developed countries. This indicates potential for expansion and increased adoption of the pension system in the country.
Furthermore, the Indian pension system is plagued by poor investment returns, complex rules and regulations, and a lack of transparency, making it difficult for people to understand and take part.
In UK -
In October 2022, the UK government announced £45bn in unfunded tax cuts which increased debt and jeopardized the country's financial stability. The Bank of England intervened to stabilize markets, and pension funds with over £1tn invested faced severe stress and the risk of collapse. This highlights how government actions can harm an individual's retirement savings.
Many pension funds in UK charge high fees that significantly reduce the overall value of the pension. The system is also inflexible, making it difficult for those who want to retire earlier or later than the traditional retirement age.
Web3 as a solution to this problem -
Web3 technology, specifically blockchain and smart contracts, can potentially improve the pension system in several ways -
Tracks Applied (3)
Polygon Technology
Chainlink
QuickNode