Industry wants the government to make retirement savings plan contributions a qualifying expense for income tax calculations.
If approved the proposal will create US style 401 K plans, but with only employee contributions.
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"We are working on a program with SEC to come up with a new product for retirement," says S Jeyavarman, President, Unit Trust Association.
“On one side we are gong to harness money on long term basis, on the other side the capital market is going to raise money on consistent basis for long term. People cannot put money and take advantage for short period.
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We are going to request the government to consider investment relief on yearly basis for those who are willing to part with their money for the long term retirement purpose,” he says.
In other words investors in these retirement