Chairman's Message

From "How much will I GET?" to "How much will I NEED?"

According to its literal definition, financial literacy is the ability to use skills and knowledge to take effective and informed money-management decisions. Without an understanding of basic financial concepts, people are conceptually not well equipped to make informed decisions related to financial management.

For an average Indian, financial literacy is yet to become a priority. In India, there are also certain erroneous beliefs associated with financial literacy, the most common being the myth that one who is ‘literate’ or ‘rich’ is also ‘financially literate’. Lack of basic financial understanding leads to unproductive investment decisions. Another myth is that financial literacy is more important for adults. We can achieve the desired results from financial literacy only when we start educating our children.

Through this website, PFRDA aims towards addressing the need of financial literacy from the perspective of retirement planning. We have tried to design the content keeping into view the four most important concepts in financial decision making- knowledge of interest rates, interest compounding, inflation and risk diversification. You would notice that we would be visiting and revisiting these fundamental concepts again and again.

Financial knowledge is especially important in times where increasingly complex financial products are easily available to a wide range of the population. Moreover, paradigm shift in the pension landscape whereby the decision making process has been transferred to the participant, calls for urgent and targeted approach towards increasing the financial literacy. Through this website, not only are we striving for providing a conceptual base to the participants’ knowledge bank, but are also striving for them to ask the most relevant questions- from "How much will I GET?" to "How much will I NEED?" and "What must I do to get what I NEED?"