Constitution of an Expert Committee on Longevity Finance

What is the News?

International Financial Services Centers Authority(IFSCA) has set up an expert committee. It will recommend an approach towards the development of the Longevity Finance Hub in the Gift-City in Gujarat and provide a road map for the same.

Aim of Longevity Finance Hub:

• Longevity Finance Hub aims to cater to the investment and wealth management needs of the ‘silver generation’, which consists of individuals aged 60 years and older.

Expert Committee on Longevity Finance Hub:

• Chaired by: The expert committee is co-chaired by Ms. Kaku Nakhate, President and Country Head (India), Bank of America, and Mr. Gopalan Srinivasan, Ex-CMD, New India Assurance Company Limited.
• Purpose: The expert committee will recommend an approach towards the development of Longevity Finance Hub and provide a road map for the same.

What is the need for the Longevity Finance Hub?

• Global estimates suggest that there are one billion people in the silver generation (a global cohort of individuals aged 60 and older). They have a combined spending power of $15 trillion and the size is ever-expanding.
• Development in medicinal science and technology will support extending the lifespan and longevity of this silver generation.
• It is estimated that by 2040, there will be more members of the silver generation than people under 20.
• This demographic change will throw open new challenges and opportunities especially in the areas of wealth management, health, insurance, and other investment products.
• Hence, the International Financial Services Centre Authority has set up an expert committee to develop Longevity Finance Hub.

International Financial Services Centres(IFSC):

• An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centers deal with flows of finance, financial products, and services across borders.
• GIFT (Gujarat International Finance Tec-City) located in Gandhinagar is India’s first International Financial Services Centre.